CVS Finalizes Rite Aid Takeover, Absorbing 9 Million Customers

CVS has completed its acquisition of select assets from the now-defunct Rite Aid, snapping up 63 stores and the prescription files from 626 pharmacies to gain 9 million new customers, as reported by HealthCare Dive. The move solidifies the pharmacy giant’s footprint following its rival's second bankruptcy in two years.

• Picking up the pieces: As part of the takeover announced Wednesday, more than 3,500 of the defunct chain's employees are joining CVS. The company framed the deal as a way to maintain continuity for patients, noting most prescription files were transferred to CVS locations within three miles of a shuttered Rite Aid.

• A bitter pill: Rite Aid entered Chapter 11 in May after a previous restructuring failed to keep it afloat. Despite slashing billions in debt, the company couldn't overcome its financial burdens and a failure to adapt as consumers drifted toward online shopping, ultimately leading to the liquidation of its entire store footprint.

• The competitive landscape: The move instantly expands CVS's customer base and physical presence across 15 states. While rivals like Walgreens and Kroger also picked up pieces of Rite Aid’s business, the acquisition further cements CVS's market dominance.

With a major competitor dismantled and its assets absorbed, CVS has further fortified its position as a top player in the U.S. pharmacy and healthcare landscape.

The fallout from Rite Aid's collapse extends beyond pharmacies, as its iconic Thrifty Ice Cream brand was sold to a holding company tied to Monster Beverage executives. Meanwhile, the broader pharmacy industry continues to consolidate, with major player Walgreens agreeing to be acquired by a private equity firm earlier this year.