Walgreens acquires Drugstore.com

March 29, 2011

Walgreens has acquired online retailer Drugstore.com Inc. for $409 million in cash.

Walgreens has acquired online retailer Drugstore.com Inc. for $409 million in cash.

“This acquisition offers a unique opportunity that will provide us immediate access to more than 3 million savvy, online loyal customers,” said Greg Wasson, president and CEO of Walgreens, Deerfield, Ill. The purchase of drugstore.com will also add around 60,000 products to Walgreens’ online offerings.

Walgreens signed a definitive merger agreement and is expected to close by the end of June. Drugstore.com is ranked as the eighth largest e-retailer in the United States, with more than $456 million in sales in 2010.

Walgreens has also been profiting from its expanded focus on products for personal and beauty care over the last year. Drugstore.com’s websites such as Beauty.com and SkinStore.com will complement Walgreens’ focus on those categories, according to Wasson and Sonya Chawla, president of e-commerce for Walgreens.

“Over the past 2 years, we have established the infrastructure from which to grow our multi-channel products and services. Drugstore.com significantly accelerates our multi-channel initiatives by expanding our product selection for our customers …[and] adding new capabilities through their well-known beauty and skin care websites,” Chawla said.

Walgreens will maintain Drugstore.com’s corporate office in Bellevue, Wash., after the merger is completed.