CVS Completes Arbor Acquisition Creating the Nation's Largest Chain Drug Retailer.WOONSOCKET, R.I.--(BUSINESS WIRE)--March 31, 1998--CVS Corporation (NYSE NYSE See: New York Stock Exchange :CVS (1) (Concurrent Versions System) A version control system for Unix that was initially developed as a series of shell scripts in the mid-1980s. CVS maintains the changes between one source code version and another and stores all the changes in one file. ) today announced that it has completed its acquisition of Arbor Drugs Arbor Drugs was a chain of drug stores based in Troy, Michigan. It was founded by Eugene Applebaum in 1974, when he merged five stores and incorporated the chain under the Arbor name. In 1986, the chain went public, opening on NASDAQ under the stock symbol ARBR. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ARBR ARBR Applied Radiation Biology and Radiotherapy ). The transaction, which joins together CVS, a leading national chain drug retailer, with Arbor, the most highly regarded regional chain, establishes the combined enterprise as the nation's top chain drug retailer based on store count and prescriptions dispensed. The combined company will have 1998 revenues exceeding $15 billion, 4,100 stores in 25 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). , and will dispense approximately 12% of all retail prescriptions in the U.S. As a result of the transaction, CVS plans to expand its new store program in 1998 to include the opening of 320 new and relocated stores, up from the 300 stores previously planned. Over the longer term, CVS expects to open an additional 150-200 stores in the Michigan market. "We are very pleased to have completed the Arbor acquisition in such a smooth and rapid manner," said Tom Ryan
Tom Ryan (born August 3 1986), who plays under the pseudonym Ogre 2, is a professional gamer from Pickerington, Ohio, USA. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of CVS/Pharmacy. "This transaction unites two growth-oriented companies with highly compatible operating philosophies. We both share a commitment to excellence and a clear focus on serving our customers. "We are excited about bringing the outstanding Arbor organization into the CVS family," continued Mr. Ryan. "We look forward to further enhancing the performance of the combined enterprise, which should lead to stronger long-term growth and increased value for our shareholders." On February 9th, CVS and Arbor jointly announced a definitive agreement that provided for CVS to acquire Arbor in a stock transaction valued at approximately $1.48 billion. For each Arbor share exchanged in the merger, Arbor shareholders will receive 0.3182 shares of CVS common stock. Arbor, formerly the nation's eighth-largest drug store chain, operates 208 locations, predominantly in southeastern Michigan. Fiscal 1997 sales reached approximately $960 million. CVS, with annual sales of $12.7 billion in 1997, is the leading drug store chain in the Northeast, Mid-Atlantic, Southeast and Midwest. As of March 28, 1998, CVS operated 3,856 stores in 24 states and the District of Columbia. General information about CVS, including corporate background and press releases, is available through CVS' web site at http://www.CVS.com. This press release contains certain forward-looking statements that are subject to risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's Securities and Exchange Commission filings. CONTACT: Investor Contact: Nancy Christal Vice President Investor Relations Investor relations The process by which the corporation communicates with its investors. (914) 722-4704 or Media Contact: Fred McGrail Director Corporate Communications (401) 765-1500, ext. 4630 |
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