Walgreen to Buy Duane Reade Drugstores for $1 Billion

Walgreen (WAG) said Wednesday it will acquire drugstore chain Duane Reade from affiliates of private equity firm Oak Hill Capital Partners in a deal valued at $1.08 billion, which includes assumption of the New York-based drugstore's debt.

Walgreen, the nation's largest drugstore operator, will fund the purchase of the 257 Duane Reade locations with existing cash and expects the deal to close by the end of August. Duane Reade had net sales of $1.8 billion last year, Walgreen said.