CVS Caremark Corp., the second-biggest U.S. drugstore chain, said it would buy Longs Drug Stores Corp. for $2.9 billion, including debt, to expand its reach in the western U.S.
Longs Drug investors will receive $71.50 a share, the companies said today in a statement. That's 32 percent more than Longs Drug closed at in New York trading before the announcement.
CVS Chief Financial Officer David Rickard said in a 2006 interview that the drugstore chain wanted to expand its presence on the West Coast and was open to doing so through acquisitions. Longs Drug has 521 locations in California, Hawaii, Nevada and Arizona.
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Walnut Creek, Calif.-based Longs Drugs Stores Corp. has developed a loyal following in Hawaii, with a history here dating back 54 years.
Longs reportedly open-ed its first store on Hotel and Bishop Streets in 1954, and was a hit with customers from the start.
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