Rite Aid to Acquire Bartell Drugs
Historic Brand Remains in Place; Deal Expands Health and Wellness Approach in Seattle and Puget Sound Region
Officials from Rite Aid and Bartell Drugs announced this week they have entered into a definitive agreement under which Rite Aid will acquire Bartell Drugs. The purchase price is to the tune of $95 million.
“During the past few years, it has become increasingly difficult for a mid-sized drugstore chain to operate independently,” said Bartell Drugs Chairman George Bartell and CEO Kathi Lentzsch in a joint letter to Bartell Drugs customers posted Oct. 7. “Changes in the pharmacy world, business tax increases and the pandemic created very strong headwinds for us. We knew we needed to do something to re-shape Bartell’s future. For months now, we have carefully considered the best way to move forward, and we believe we have found the most successful way. Today, we announced our agreement to sell Bartell Drugs to Rite Aid.”
Founded in 1890, family-owned Bartell Drugs generates more than $550 million in revenue and fills approximately 5.5 million prescriptions per year across its 67 store footprint in Seattle and throughout King, Snohomish and Pierce counties in Washington state. Bartell Drugs’ stores join Rite Aid’s existing 69 Seattle area stores and will continue to operate under the Bartell Drugs name.
“For more than a century, Bartell’s has been an integral part of the fabric of Seattle and neighboring communities serving families with pharmacy services while promoting the health and well-being of local communities,” said Heyward Donigan, President and CEO of Rite Aid. “The acquisition of Bartell’s fits perfectly into and accelerates our RxEvolution strategy, as our companies share a commitment to total health and wellness, the importance of the pharmacist as a trusted health advisor and the critical role the neighborhood pharmacy plays. Expansion within the growing Seattle area will allow Rite Aid to better serve customers, health plans and healthcare providers.”
“Looking forward to the future with Rite Aid,” said George D. Bartell, Chairman of Bartell Drugs. “We are excited about the opportunity to expand upon our mission to be the best neighborhood drug store in the Pacific Northwest. Rite Aid’s vision fits well with what we think will best serve the needs of our customers. This is a day to celebrate the 130-year success story of Bartell Drugs, while eagerly anticipating the future.”
The transaction is expected to close by the end of Rite Aid’s 2021 fiscal year, subject to regulatory approvals and other customary closing conditions.