UPDATED: May 22 at 10:30 a.m.
The courts have signed off on Rite Aid's plans to sell dozens of pharmacies to CVS Health, according to an announcement from the healthcare giant.
CVS said in the release that it bid successfully on pharmacy files for 625 Rite Aid locations across 15 states in its existing footprint, as well as 64 store locations in Idaho, Oregon and Washington, where it is less established.
The deal is still subject to regulatory approvals and other closing conditions.
CVS said that it is working closely with Rite Aid to transition its existing patients to CVS Pharmacy, and will welcome existing employees to apply for work with CVS should the sale be finalized.
"We’re well-positioned to serve our existing customers and patients, as well as those who may be transitioning to us from Rite Aid and are excited to introduce them to our best-in-class front store and pharmacy offerings, upon the closings of the transactions," the company said. "CVS Pharmacy plays an important and trusted role in the communities we serve, creating simpler, more accessible experiences for patients, customers and caregivers."
Rite Aid also accepted bids from grocers Albertsons, Kroger and Giant Eagle for other stores that bankruptcy courts are evaluating. The pharmacy chain filed for Chapter 11 protection for the second time in two years, a move it said will make it easier to facilitate the sales.
Editor's note: This story previously inaccurately stated the number of physical stores CVS Health will acquire.
UPDATED: May 16 at 3:40 p.m.
Rite Aid confirmed Thursday that it had secured a series of deals to sell off more than 1,000 of its stores to multiple pharmacy competitors, including CVS Health and Walgreens.
The grocers Albertsons, Kroger and Giant Eagle—which operate pharmacies at their stores—will buy assets from Rite Aid as well, according to the announcement. The news follows media reports that these companies were looking to scoop up stores put up for sale by Rite Aid.
Rite Aid will also sell a number of its pharmacy and Bartell Drug locations in Washington, Oregon and Idaho to CVS, according to the announcement.
“A key priority for Rite Aid is to ensure that as many of our loyal customers as possible continue to receive the pharmacy services and care they require without interruption," Rite Aid CEO Matt Schroeder said in a statement. "These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members.”
The sales will be subject to the approval of bankruptcy courts in New Jersey. The pharmacy chain filed for Chapter 11 bankruptcy protection earlier this month—its second time in less than two years—as it seeks buyers for its assets.
Earlier this month, pharmacy chain Rite Aid filed for bankruptcy for the second time in less than two years, revealing that it would seek buyers for its retail locations.
In the Pacific Northwest, it's garnering interest from pharmacy rival CVS Health, according to a report from Bloomberg. Rite Aid CEO Matthew Schroeder told employees on Thursday that CVS had made a bid on a large number of stores in Washington, Oregon and Idaho, along with patient prescription data, according to a recording reviewed by the outlet.
If a deal were to go through, it would give CVS greater reach in a region where its presence is currently smaller, per the article.
Schroeder said that Rite Aid has also received bids on some of its assets from multiple other pharmacy groups, including Walgreens, Albertsons, Kroger and Giant Eagle, Bloomberg reported.
Bloomberg said CVS declined to comment on the potential bids.
Rite Aid announced on May 6 that it had filed for Chapter 11 bankruptcy protection, a move it says will facilitate the planned sale of its assets. The company also said it secured $1.94 billion to support the bankruptcy and sale process.
Pharmacy customers can continue to receive their prescriptions and other services at Rite Aid locations during the bankruptcy proceedings, the company said.
Rite Aid previously filed for bankruptcy in October 2023 as it faced a rising debt load related to payouts from litigation over its role in the opioid epidemic. The company emerged from bankruptcy in September 2024, with Schroeder taking the helm, after it reduced its debts by $2 billion.