Winning Brands Corporation (WNBD)

[J-Rhino]

“Duane Reade is a compelling strategic acquisition that will immediately provide Walgreens with a leading position in the largest drugstore market in the U.S.,” Gregory D. Wasson, Walgreen’s chief executive, said in a statement.

Walgreen is buying the 257-store chain, which is burdened by a big debt load, from the private equity firm Oak Hill Capital Partners. The deal — in which Walgreen will pay $618 million in cash and assume $457 million in Duane Reade debt — will be financed by Walgreen’s cash on hand.

Duane Reade, founded in 1960 and named after the two streets in Lower Manhattan where the first store was built, generated about $1.8 billion in sales in 2009, according to Walgreen.

http://dealbook.nytimes.com/2010/02/17/walgreens-to-buy-duane-reade-for-1-1-billion/