MEMPHIS, Tenn.--(BUSINESS WIRE)--Fred’s, Inc. (NASDAQ: FRED) today announced that it has completed the previously reported $66 million acquisition of Reeves-Sain Drug Store, Inc., a private specialty and retail pharmacy company, including its EntrustRx specialty pharmacy operation.
EntrustRx, which is licensed in all 50 states, has a strong regional presence in the Southeast, serviced from facilities in Spring Hill, Tennessee and Columbus, Mississippi. It dispenses specialty pharmaceuticals to treat complex conditions and diseases that typically require ongoing support for extensive periods of time, with main therapy lines that include hepatitis C, oncology, growth hormones, multiple sclerosis, and rheumatology. The single Reeves-Sain retail pharmacy operates in Murfreesboro, Tennessee.
“We continue to be very excited about the prospects for expansion in specialty pharmacy, the largest growth area of the pharmacy industry,” said Fred’s CEO Jerry Shore, “and we expect that EntrustRx will increase the momentum of these efforts. Specifically, this acquisition strengthens our specialty pharmacy operations, and the Reeves-Sain Drug Store is a model for a scalable retail experience providing clinical services, immunizations, compounding, and hospice medications. We welcome the skilled and valued EntrustRx and Reeves-Sain Drug Store employees to the Fred’s team and know that they will make great contributions to the future of our pharmacy operations.”
Fred’s, Inc. operates 661 discount general merchandise stores, including 19 franchised Fred’s stores, in the southeastern United States. For more information about the Company, visit Fred’s website at www.fredsinc.com.
Comments in this news release that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. A reader can identify forward-looking statements because they are not limited to historical facts or they use such words as “outlook,” “guidance,” “may,” “should,” “could,” “believe,” “anticipate,” “plan,” “expect,” “estimate,” “forecast,” “goal,” “intend,” “committed,” “continue,” or “will likely result” and similar expressions that concern the Company’s strategy, plans, intentions or beliefs about future occurrences or results. These risks and uncertainties include, but are not limited to, those associated with the Company’s announced strategic plan, the ultimate terms of the reworked pharmacy distribution agreement, lease buyouts and the underlying assumptions and projections upon which they are based, as well as risks that intended results may not be achieved or may not occur as quickly as expected; the success of announced acquisition activities and future growth trends in businesses acquired; general economic trends; changes in consumer demand or purchase patterns; delays or interruptions in the flow of merchandise between the Company’s distribution centers and its stores or between the Company’s suppliers and same; a disruption in the Company’s data processing services; costs and delays in acquiring or developing new store sites; and the factors listed under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and any subsequent quarterly filings on Form 10-Q filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date made. Fred’s undertakes no obligation to release revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required to be reported under the rules and regulations of the Securities and Exchange Commission.