Chillin' out till it needs to be funded
Walgreens upped its brand investments with a $1.8 billion sales value Duane Reade falling into its lap for a cheap $1.08 billion
Walgreen Co. is buying Duane Reade Holdings Inc., operator of a chain of 257 drugstores in the New York area, for about $1.08 billion including assumption of debt, the company said Wednesday.
Calling the purchase of the 50-year-old Duane Reade “a compelling strategic acquisition,” Walgreen($WAG) said it would fund the purchase with cash on hand and hopes to close the deal by the end of the current fiscal year on Aug. 31.
Here in Asia, Airtel got off to a wrong start purchasing the #3 in Africa Markets for 40 million subscribers at $200 per subscriber ($11.7 billion for all except Morocco and Sudan and pending litigation in 8million subscriber strong? Nigeria) stretching emerging market valuations to pay the dollar and getting Zain free of debt
The above investment in brand and ready franchise seemed to show up the requirement for growth hungry corporations from India and China in a sad light compared to erstwhile money losing hyper-retailers like Wlgreens in the USA.
Walgreens purchase also looks to be much cleaner and meaner than the pyrotechnics of the otherwise favored Macy’s and Nordstrom. Duane Reade is also a local/regional brand with great recall in New York City . Next for drugs retailing could be crossing the pond for someone like Boots for instance? It is a great franchise with that avoidable but stong real estate bent of mind with Central London locations that may make it unattractive to buyers, while it seems to be in no hurry to expand itself out of that place.
Meanwhile Airtel is starting off on the rights foot to raise $5 billion to pay the Kuwaiti Owners of Zain Telecom