Rite Aid details merits of the proposed merger with Albertsons to holders

Rite Aid announced that the registration statement on Form S-4, in connection with its proposed merger with Albertsons Companies, has been declared effective by the SEC. In connection with the definitive proxy statement/prospectus, Rite Aid issued a letter to shareholders detailing the merits of the proposed merger with Albertsons. The letter says, “Dear Rite Aid Shareholder: On February 20, 2018, Rite Aid announced plans to merge with privately held Albertsons Companies (“Albertsons”) to create a new publicly traded leader in food, health and wellness. You are being asked to vote to approve this merger and show your support for the future of Rite Aid. The Rite Aid Board and management team are confident that the merger with Albertsons is the right combination, with the right partner, at the right time. This combination significantly enhances the company’s scale and diversifies its business. We also expect it will improve the company’s growth prospects, financial strength and ability to deliver compelling long-term value for shareholders and customers. In addition to ownership in a stronger, better-positioned company, Rite Aid shareholders will also share in the incremental benefits created by the $375 million in expected run-rate cost synergies and $3.6 billion of expected incremental revenue opportunities. In the face of a consolidating and evolving marketplace, we have worked hard to defend and improve our competitive position. This merger accelerates those efforts by transforming our business strategically and financially and providing shareholders with the opportunity to realize significant value anticipated from the combination.”

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