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CVS Caremark To Acquire Longs Drug Stores

August 13, 2008
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CVS Caremark Corp., Woonsocket, R.I,., and Longs Drug Stores Corp., Walnut Creek, Calif., announced that they have entered into a definitive agreement under which CVS Caremark will acquire Longs for $71.50 per share in cash, for a total purchase price of $2.9 billion, including the assumption of net debt. Through this acquisition, CVS Caremark will acquire Longs’ 521 retail drugstores in California, Hawaii, Nevada and Arizona, as well as its Rx America subsidiary, which offers prescription benefits management services to more than 8 million members and prescription drug plan benefits to approximately 450,000 Medicare beneficiaries.

“This transaction provides tremendous benefits to CVS Caremark by accelerating our expansion in very attractive drugstore markets and strengthening our geographic reach,” said Tom Ryan, chairman, president and CEO of CVS Caremark. “In fact, Longs has a significant presence in ten non-CVS markets that are among the top 100 drugstore markets in the country.”

Warren F. Bryant, chairman, president and CEO of Longs, stated, “The transaction represents an excellent opportunity for Longs to deliver significant and certain value to its shareholders while positioning its stores to thrive in the future for the benefit of its employees and customers.”

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