Walgreens to Acquire Rite Aid in $17.2 Billion Deal • Tuesday, Oct. 27, after the market close, Walgreens Boots Alliance announced an agreement to acquire smaller drugstore chain Rite Aid for $9.4 billion in cash, offering $9 per share in cash, which represents a 48% premium to Rite Aid’s closing price of $6.08 on Monday. Including debt, the deal is valued at $17.2 billion, the company said. • The deal would bring together the #1 and #3 retail pharmacy companies, creating a pharmacy giant with over 13,000 stores and more than $67.1 billion in combined revenue, according to Drug Store News’s Annual PoweRx Industry Rankings. • The combined company would have an especially strong presence in California and New York. The combination is expected to realize cost synergies of at least $1 billion annually. • The boards of both companies have approved the transaction, which must receive Hart-Scott-Rodino approval and is expected to close during the second half of calendar 2016. SELECTED WALGREENS ACQUISITIONS Date Value Acquisition Business Announced (USD Mil.) 27/10/2015 Rite Aid Corp Pharmacy 9,400 28/07/2015 TytoCare Healthcare Technology Undiscl. 10/02/2015 Clinical Holdings Clinical Development Undiscl. 16/10/2014 MedAvail Technologies Pharmacy Kiosk Undiscl. 24/03/2011 drugstore.com Online Pharmacy 409 17/02/2010 Duane Reade Holdings Drugstore 1,100 08/05/2009 31 Drug Fair stores Pharmacy Undiscl. 17/03/2008 Whole Health Management Home Care & Wellness Center Undiscl. 17/03/2008 Take Care Health Systems Healthcare Clinic Undiscl. 02/07/2007 OptionCare Enterprises Home Healthcare Service 850 29/06/2006 Medmark Specialty Pharmacy 140 05/06/2006 Happy Harry's Discount Drugstore Undiscl. 05/07/2006 C&M Pharmacy Pharmacy Undiscl. 16/02/2006 Canadian Valley Medical Solutions Home Care Undiscl. 01/11/2005 Home Pharmacy of California Specialty Pharmacy Undiscl. 04/10/2005 Schraft's A Walgreens Specialty Specialty Pharmacy 850 Pharmacy Source: Bloomberg and company reports DEBORAH WEINSWIG, EXECUTIVE DIRECTOR –HEAD OF GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 1 Copyright © 2015 The Fung Group. All rights reserved. Deborah WeinswiG, CPA Executive Director—Head of Global Retail & Technology Fung Business Intelligence Centre New York: 917.655.6790 Hong Kong: 852.6119.1779 [email protected] Filippo Battaini [email protected] Marie Driscoll, CFA [email protected] John Harmon, CFA [email protected] Aragorn Ho [email protected] John Mercer [email protected] Shoshana Pollack [email protected] Kiril Popov [email protected] Jing Wang [email protected] Steven Winnick [email protected] HONG KONG: 10th Floor, LiFung Tower 888 Cheung Sha Wan Road, Kowloon Hong Kong Tel: 852 2300 2470 LONDON: 242-246 Marylebone Road London, NW1 6jQ United Kingdom Tel: 44 (0)20 7616 8988 NEW YORK: 1359 Broadway, 9th Floor New York, NY 10018 Tel: 646 839 7017 FBICGROUP.COM DEBORAH WEINSWIG, EXECUTIVE DIRECTOR –HEAD OF GLOBAL RETAIL & TECHNOLOGY [email protected] US: 917.655.6790 HK: 852.6119.1779 CN: 86.186.1420.3016 2 Copyright © 2015 The Fung Group. All rights reserved. .