Rite Aid agreed to acquire the Seattle-area family-owned drugstore chain Bartell Drugs for $95 million.

WHO: Founded in Seattle’s Central District in 1890, Bartell Drugs is one of the oldest businesses in Washington state. The 67-store regional drugstore chain has been owned by the Bartell family since it opened 130 years ago.

Rite Aid Corporation is on the front lines of delivering healthcare services and retail products to more than 1.6 million Americans daily. Rite Aid has about 2,400 stores in 18 states, including 69 in and around Seattle.

WHY: This deal is an effort by Rite Aid to add scale three years after selling half its stores to Walgreens after a failed $9.4 billion merger left it in a weaker position in an industry that continues to consolidate.

IN THEIR OWN WORDS: “We felt that this was the only answer,” George D. Bartell, chairman of the firm his grandfather, George H. Bartell Sr., started, told the Seattle Times. “It was getting more difficult for regional operators to compete in the market.”

“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,” Heyward Donigan, President and Chief Executive Officer, Rite Aid, said in a statement. “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,” George D. Bartell, Chairman of Bartell Drugs, said in a statement, “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.”

DETAILS:

• Rite Aid agreed to acquire Bartell Drugs for $95 million.
• Bartell Drugs generates over $550 million in revenue and fills approximately 5.5 million prescriptions annually.
• Bartell Drugs has 67 stores in Washington, state which will continue to operate under the same name.
• The transaction is expected to be accretive to Rite Aid’s adjusted earnings per share after the first 12 months following the closing of the transaction.
• Moelis & Company acted as Rite Aid’s financial advisor and Troutman Pepper and Morgan Lewis acted as legal advisors to Rite Aid in connection with this transaction.
• Lazard Freres & Co. LLC acted as Bartell Drug’s financial advisor, and K&L Gates acted as legal advisor to Bartell Drugs in connection with the transaction.