CVS Purchases West Coast Drug Store Chain

CVS Caremark Corp. is planning to buy Longs Drug Stores Corp. for $2.9 billion, a number of California business journals reported.

CVS will acquire Longs’ 521 retail drugstores in California, Hawaii, Nevada and Arizona as well as its Rx America subsidiary, which offers prescription benefits management services to over 8 million members and prescription drug plan benefits to approximately 450,000 Medicare beneficiaries.

CVS said the acquisition will include the assumption of Walnut Creek-based Longs’ debt, and come with a $71.50-a-share purchase price – a 32% premium over Longs’ closing stock price on Tuesday.

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