As previously disclosed, on June 28, 2017, Walgreens Boots
Alliance, Inc. (the Company) entered into an Asset Purchase Agreement (the Asset Purchase Agreement) with Rite Aid Corporation (Rite Aid) and Walgreen Co., a wholly-owned direct subsidiary of the Company
(Walgreen Co.), pursuant to which Walgreen Co. agreed to purchase certain stores, distribution centers, inventory and other specified assets from Rite Aid and its affiliates upon the terms and subject to the conditions set forth in the
Asset Purchase Agreement (collectively, the Transaction).
The obligation of the parties to consummate the Transaction is
subject to, among other things, the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the HSR Act), applicable to the Transaction. The Company and Rite Aid filed
the notification and report forms (the Initial Filing) required under the HSR Act with the U.S. Department of Justice (the DOJ) and the U.S. Federal Trade Commission (the FTC) on July 17, 2017. On
August 16, 2017, in consultation with Rite Aid, the Company voluntarily withdrew the Initial Filing. The Company expects to
re-file
the notification and report form under the HSR Act with the DOJ and the
FTC by August 18, 2017. If the Company re-files the notification and report form by August 18, 2017, the waiting period under the HSR Act with respect to the re-filing would be scheduled to expire on September 18, 2017, unless
otherwise extended or terminated.
Cautionary Note Regarding Forward-Looking Statements
All statements in this report that are not historical statements are forward-looking statements made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding the asset purchase agreement between the Company, Walgreen Co. and Rite Aid and the transactions contemplated thereby and
the possible timing and effects thereof, the ability of the parties to complete the transactions considering the various closing conditions, and the outcome of legal and regulatory matters. Words such as expect, pending,
potential, likely, preliminary, would, could, should, can, will, project, intend, plan, goal,
continue, synergy, on track, believe, seek, estimate, anticipate, may, possible, assume, and variations of such words and similar
expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions, known or unknown, which could cause actual
results to vary materially from those indicated or anticipated. Such risks include, but are not limited to, risks related to the proposed transactions and acquisitions generally, including the risk that the transactions may not close due to one or
more closing conditions to the transactions not being satisfied or waived, such as certain regulatory approvals not being obtained, on a timely basis or otherwise, or that a governmental entity prohibited, delayed or refused to grant approval for
the consummation of the transactions or required certain conditions, limitations or restrictions in connection with such approvals, risk that the business of the Company or the Rite Aid stores proposed to be sold to the Company may suffer as a
result of uncertainty surrounding the transactions, risks related to the ability to realize the anticipated benefits of the proposed transactions, the outcome of legal and regulatory matters, including with respect to the outcome of discussions with
the U.S. Federal Trade Commission and otherwise in connection with the pending acquisition of certain Rite Aid assets
by the Company, the risk of unexpected costs, liabilities or delays, changes in managements assumptions, the risks associated with the integration of complex businesses, and risks
associated with changes in laws, regulations or interpretations thereof. These and other risks, assumptions and uncertainties are described in Item 1A (Risk Factors) of the Companys Annual Report on Form
10-K
for the fiscal year ended August 31, 2016 and Quarterly Report on Form
10-Q
for the fiscal quarter ended May 31, 2017, each of which is incorporated
herein by reference, and in other documents that the Company files or furnishes with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except
to the extent required by law, the Company does not undertake, and expressly disclaims, any duty or obligation to update publicly any forward-looking statement after the date of this report, whether as a result of new information, future events,
changes in assumptions or otherwise.