Walgreens buys drugstore.com, beauty.com
Walgreens and drugstore.com have announced a definitive merger agreement pursuant to which Walgreens will acquire drugstore.com (the eighth-largest e-tailer in the U.S. according to Internet Retailer
magazine.) in a transaction with a total enterprise value of approximately $409 million
Walgreens President and CEO Greg Wasson said:
Our acquisition of drugstore.com today significantly accelerates our online strategy to leverage the best community store network in America by becoming the most convenient choice for health and daily living needs whether customers shop online or in our stores,
This acquisition offers a unique opportunity that will provide us immediate access to more than 3 million savvy, online loyal customers, and will allow us to move even closer to our existing customers through relationships with new vendors and partners, adding approximately 60,000 products to our already strong online offering. Importantly, drugstore.com's well-recognized presence in the health, personal care, beauty and vision categories, including such strong websites as drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com, will complement and extend many of our own multi-channel initiatives that have been driving growth in our business. As a result, we are positioned better than ever to be the most convenient multi-channel retailer of health and daily living needs in America — offering customers what they want, when they want it and where they want it.
Dawn Lepore, drugstore.com CEO and Chairman said:
We believe the acquisition of drugstore.com by Walgreens is a great fit for all of our constituencies, drugstore.com benefits from this transaction by joining the largest and most trusted drugstore chain in the U.S. Our growth strategies are perfectly aligned, and Walgreens will be able to accelerate and expand the investments necessary to achieve our vision and growth opportunities. Our goal consistently has been to create value for our customers, employees and shareholders. We believe we have made significant progress over the last six years and built an organization with a broad and deep bench of Internet experience. The opportunity to become a part of Walgreens is the right next step in this journey.
Walgreens will maintain drugstore.com's corporate office in Bellevue, Wash and will maintain separate branding of its websites after the transaction closes. Over the long term, Walgreens intends to enhance its multi-channel product assortment and the overall customer experience by leveraging drugstore.com's websites.