Akin Gump Advises Fred's Pharmacies in Pharmacy Files Acquisition by Walgreens

(New York) – Walgreens and Fred's, Inc. today announced they have entered into a definitive asset purchase agreement, pursuant to which Walgreens will acquire pharmacy patient prescription files and related pharmacy inventory of 185 Fred's stores located across 10 Southeastern states. A team from Akin Gump counseled Fred’s in the deal.

Under the agreement, the aggregate consideration to be paid by Walgreens to Fred's is $165M, subject to adjustment, plus an amount equal to the value of related pharmacy inventory.

The transaction is part of a previously announced plan by Fred's to unlock shareholder value by monetizing non-core assets through strategic transactions. Fred's will continue to operate its retail stores at most of these locations after the pharmacies close. Once the transaction is complete, Fred's will continue to operate approximately 162 pharmacies across nearly 600 stores.

The Akin Gump team advising Fred’s was led by corporate partner David D’Urso, and included corporate counsel Kim Donnelly Rowe and associate Victoria Chu, antitrust partner Corey Roush, labor and employment partner Nathan Oleson and tax counsel Brandon Morris.

Founded in 1945, Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 900 attorneys in offices throughout the United States, Europe, Asia and the Middle East.

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