ACQUIRER: CVS Health, $62.79 billion market cap
SELLER: Fred’s, $62 million market cap
TARGET: EntrustRx, Fred’s specialty-pharmacy unit
PRICE: $40 million, plus an amount equal to inventory value
STATUS: Under agreement
RATIONALE: Fred’s has been working to sell noncore assets and Interim Chief Executive Joe Anto said in prepared remarks that proceeds will allow the company to “pay down a significant portion of our debt and also be used for general corporate purposes.”
CLOSING: Expected to close by the end of May.
STOCK: Shares in Fred’s rose 14% to $1.90 in after-hours trading.
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