DEERFIELD, Ill., Feb. 17 (UPI) -- Walgreen Co. said Wednesday it has agreed to buy Duane Reade Holdings Inc., a drug-store chain based in New York, for slightly more than $1 billion.
Duane Reade, with 257 outlets in and around New York City, is currently owned by Oak Hill Capital Partners. The deal includes the stores, the company's headquarters and two distribution centers.
Walgreens said Duane Reade would maintain its own brand identity. Over time, however, Walgreens will figure out which stores might close, given Walgreens operates 70 of its own stores in the New York metropolitan area.
In addition, Walgreens said "over time" it would consolidate office functions, as well.
In a statement, Duane Reade Chairman and Chief Executive Officer John Lederer said, "We are pleased that Walgreens shares our commitment to finding new and innovative ways to serve local communities."
The deal is expected to close this year. Walgreens said it expects to realize a savings of up to $130 million in operating costs with the merger.
