Acquisition
On August 12, 2008, Longs Drugs announced that they were being acquired by CVS Caremark, the operator of the national CVS/pharmacy chain of drugstores. CVS bought the 521 Longs locations to expand its presence on the West Coast, primarily in California. The acquisition also included access to the Hawaii market. CVS made its first major entry into California with its 2006 acquisition of Southern California based Sav-On Drugs. CVS Caremark paid a total of US$2.54 billion to acquire all outstanding shares of Longs Drugs, and hopes to save upwards of $100 million in 2009 and $140–$150 million in 2010 in expenses from synergies attained from the business combination. On September 12, 2008 the Walgreen Co. stepped in with an offer representing a $3.50 per share premium over the cash purchase price offered by CVS. However, Walgreens dropped their offer on October 8, allowing CVS' deal to progress. On October 29, CVS had secured 78.07% of Longs shares, and Longs was merged into CVS the next day on October 30.
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