According to a company statement, CVS based the acquisition on acquiring often unavailable and expensive property as the company expands into the western states. The deal is expected to close in the fourth quarter.Customer service has always been a hallmark of Longs Drugs, which now has 521 sites in California, Arizona, Nevada and Hawaii. Ventura County alone has 14 Longs Drug Stores, and the company also owns Rx America, a prescription benefits management program with more than eight million members.A Longs employee who asked not to be identified said staff was kept in the dark until a conference call to store managers announced the acquisition. Longs is non-union, but offers superior discounts and other benefits to employees, many who have longstanding careers with the chain.The Longs stores in the continental United States will be converted to the CVS brand in 2009, while sites in Hawaii - the chain’s biggest revenue generators - will retain the Longs name for the foreseeable future. Once the acquisition is completed, CVS will operate 6,800 drugstores in 41 states and the District of Columbia.
Longs Drug Store bought by CVS Pharmacy
August 20, 2008
Santa Paula News
There were some long faces at Longs Drug Store in Santa Paula after the announcement that the West Coast chain is being sold to CVS Caremark Corporation, headquartered in Rhode Island.
By Peggy KellySanta Paula TimesThere were some long faces at Longs Drug Store in Santa Paula after the announcement that the West Coast chain is being sold to CVS Caremark Corporation, headquartered in Rhode Island. The deal, announced August 12, is valued at $2.7 billion, with a $71.50 per-share cash offer to Longs shareholders.The per share offer was a 32 percent premium over Walnut Creek-based Longs’ closing price of $54.04. Longs shares soared 30 percent, or $16.21, to $70.25 in after-hours trading. With the assumption of the chain’s approximately $200 million in debt, the deal is valued at about $2.9 billion.“I’ve always enjoyed shopping at Longs, it’s different, more personal,” said a woman visiting the Santa Paula store last week when told of the sale. “The store is always so neat and everything is easy to find,” said the woman, who declined to give her name. “I certainly hope the deal doesn’t change things.”
