Mergers and Acquisitions in
the Pharmacy Industry

The pharmacy industry is well established and is still experiencing sales growth. However, pharmacies and drug stores have seen a steady decline in their profit margins. Due to this pharmacies are acquiring their competitors and merging locations to bring more customer traffic through a single location.

As the consolidation of the pharmacy industry continues independents have been a majority of the acquisitions. However, there have been an increasing number of mergers and acquisitions between the larger and regional pharmacy chains.

With the pharmacy industry roll-up there will be fewer pharmacy locations per city, but there will also be fewer pharmacy businesses – nationwide. This means there are fewer potential pharmacy buyers when an owner of a pharmacy decides it is time for an exit strategy.

Contact Washburn & Associates when you have questions regarding selling, buying, valuing, or financing a pharmacy or drug store.

Locations and pharmacy businesses that have been taken out of the potential buyer pool:

     
Seller Buyer

# of stores purchased
Albertson's Cerberus Capital Mgmt 655
Albertson's Certified Grocers of Calif  31
Albertson's CVS 703
Albertson's Publix Super Markets 49
Albertson's Raley's 27
Albertson's Ralph's Grocery Co 42
Albertson's Stater Bros Markets 44
Albertson's SUPERVALU 1124
Albertson's Vons Companies Inc. 5
American Drug Stores co.  Albertson's 1558
Arbor Drugs  CVS 207
Brooks Eckerd Rite Aid 1850
Brunos Supermarkets Southern Family Markets 56
Buttrey Food & Drugs Stores Co. Albertson's 44
City Drug Stores  Jean Coutu Grp/Brooks Ph 11
Copps Food Center Aurora Ph 12
CVS Rite Aid 11
D.A.W. Inc. Nyer Medical Group 20
Drug Emporium Big A Drug Stores 15
Drug Emporium Longs Drugs 20
Drug Emporium Snyder's Drug Stores  81
Drug Fair Walgreens 33
Duane Reade Walgreens 258
Eckerd Corp. Brooks Pharmacy 1540
Eckerd Corp. CVS Corp 1260
Eckerd Corp. Inland Retail Real Estate Trust 19
Edgehill Drugs Inc. Rite Aid Corp 25
F&M Super Drug Stores Snyder's Drug Stores 12
Family Drug Stores Sioux Valley Health System 11
FamilyMeds DrugMax 82
FamilyMeds Walgreens 78
Farmacias El Amal Walgreens 20
Farmer Jack (under A&P) Kroger 20
Fedco Drugs Navarro Discount Drugs 4
Fedco, Inc. (Florida) Palm Beach Ph 20
General Nutrition Centers Areas Management 5813
Genovese Drug Stores Inc.  Eckerd Corp 141
Grand Union CVS 10
Grand Union Pathmark Stores 6
Gresham's Pharmacies Eckerd Corp 7
Happy Harry's Walgreens 76
Hi-School Pharmacies Walgreens 17
Integrated Pharmacy Solutions Familymeds 38
Kaiser Permanente's NE Division Arrow Ph & Nutrition Ctrs. 17
Kash n'Karry  Medicine Shoppe Ph 50
Keltsch Drug Stores  Scott's Food Stores  14
KPC Medical Mgmt Arrow Corp 18
Love Stores Duane Reade 16
May's Drug Stores USA/Super D 39
Medic Walgreens 23
Medicap Medicine Shoppe Int. 179
Medicine Shoppe  Melrose Trading co 5
Med-X Super D 22
NeighborCare Inc. Omnicare 30
Network Pharmaceuticals Longs Drugs 21
Nob Hill Foods Raley's Supermarket & Drug Ctrs 27
Osco Drug Stores Brooks Pharmacy 80
Pathmark The Great Atlantic & Pacific Tea Co 143
Pharmhouse Corp. Phar-Mor Inc 32
PrairieStone Pharmacy, LLC Arcadia Resources, Inc. 200
Rock Bottom Stores Duane Reade 38
Scott's Food & Ph The Kroger Co. 18
Sedano's Pharmacy Navarro Discount Pharmacies 11
Shaw's Supermarkets Albertson's 202
Shelly's Rite Aid 5
Smiths Food & Drug Stores Fry's Food Stores  37
Snyder Drugs Stores CVS   23
Snyder Drugs Stores  Katz Group 141
Spartan's Pharm Stores Rite Aid 12
Super Sav-On Drugs Arrow Ph & Nutrition Ctrs. 18
Thriftway Ph Assoc. CVS 16
Tops Markets Price Chopper 6
Tops Markets Giant Eagle 5
Ukrop's Martin Food Markets 25
Value Drug Duane Reade 5
Various Independents Snyder's Drug Stores 6
Various Locations ICN Pharmaceuticals 88
Various Locations Horizon Pharmacies, Inc. 15
Various Locations Sav-Mor Drugs 6
Various Locations Snyder's Drug Stores  8
VG's Spartan Stores 32
Vix Deep Discount Drug Emporium Inc. 12
Vix Deep Discount Snyder's Drug Stores 12
Wester Drug Dist. Longs Drugs 20
Western Drug of Billings Snyder's Drug Stores 7