WILSONVILLE, Ore. -- PayLess Drug Stores said Monday it has completed its previously announced deal to buy 124 Pay'n Save stores in the Northwest and taken over operation of the stores.
'We don't want to interrupt prescription service nor do we plan to make many personnel changes,' said Tim McAlear, president and chief executive officer.
'Hopefully, the customers will not even notice the change.'
The deal includes 95 stores in Washington, 15 in Hawaii, 11 in Alaska and three in Idaho and a distribution center in Auburn, Wash.
Pay'n Save stores are similar in size to PayLess Drug Stores, and many are in shopping centers similar to the sites where many PayLess Drug Stores are located.
PayLess Drug Stores, a wholly owned subsidiary of the Kmart Corp., now operates a total of 542 stores in 12 western states.
Pacific Enterprises announced in May that it had agreed to the deal for the Pay'n Save stores. It announced at the same time that it would sell its five other chains (Thrifty Drug, Bi-Mart, Big 5, Gart Bros., and MC Sporting Goods) to groups led by Los Angeles investment bankers Leonard Green & Partners.
Pacific Enterprises said it netted $275 million from the two deals.
The holding company, which also operates a utility and an oil-and-gas business, took a $475 million charge in the first quarter to leave its retailing business. It posted a first-quarter loss of $464 million.
