The acquisition of Rite Aid Corp., Camp Hill, Pa., by Walgreens Boots Alliance Inc., Deerfield, Ill., could create a single company with a combined $20.5 billion in retirement assets.
Information was unavailable on how the companies’ retirement programs would be affected by the deal valued at $17.2 billion.
Walgreen Co. had $8.5 billion in U.S. defined contribution assets as of Dec. 31, according to its most recent Form 5500 filing with the Department of Labor.
Alliance Boots was acquired by Walgreens in December 2014. It had $8.9 billion in defined benefit assets as of Aug. 31, according to its most recent 10-K filing with the U.S. Securities and Exchange Commission. Information on the company’s defined contribution assets could not be learned by press time.
Rite Aid had $3 billion in defined contribution assets as of Dec. 31, according to its most recent 11-K filing. It also reported $130 million in qualified pension fund assets as of Feb. 28, according to its most recent 10-K filing. The 10-K further noted that Rite Aid administers a non-qualified retirement for executives but an asset size was not disclosed.
Aon Hewitt is Rite Aid’s record keeper. Walgreen’s record keeper is Empower Retirement.
A spokesman for Walgreens Boots Alliance did not immediately have information beyond the release. A Rite Aid spokeswoman could not be reached for additional information by press time.
The transaction is expected to close in the second half of 2016, pending approval of Rite Aid shareholders and other regulatory approvals.
