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CVS buying Arbor Drugs
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February 9, 1998: 10:40 a.m. ET
CVS will swap $1.48 billion of stock for biggest drug chain in Michigan
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NEW YORK (CNNfn) - CVS Corp. said Monday it will acquire Arbor Drugs Inc. of Michigan, the nation's eighth-largest drugstore chain, in a stock swap valued at $1.48 billion.
CVS said it will give Arbor Drugs shareholders between 0.3182 and 0.3660 share of CVS stock for each Arbor share, depending on CVS' trading price. The transaction has been approved by the boards of both companies.
The deal follows last year's purchase of Revco DS by CVS, in which the Woonsocket, R.I.-based company was forced to sell Revco locations in Virginia and New York to meet regulatory approval.
Arbor Drugs, located in Troy, Mich., operates about 200 stores, primarily in the southeastern part of the state. With annual sales of nearly $1 billion, the company has about 45 percent of the Detroit market.
Separately, CVS reported it earned 61 cents a share in the fourth quarter, compared with 51 cents a year earlier. Analysts were estimating 60 cents a share. Sales rose 8.4 percent to $3.34 billion.
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CVS
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