HealthCentral Buys DrugEmporium.com
Drug Emporium will receive preferred stock from HealthCentral convertible into 2.4 million common shares, and the opportunity to earn additional amounts of convertible preferred stock if certain revenue targets from additional sources of revenue are met.
HealthCentral will acquire Drug Emporium's Web site, a leased 60,000-square-foot distribution center, an automated prescription fulfillment center in Louisville, KY, and $3 million in inventory. The deal is expected to close in the third quarter pending regulatory approval.
HealthCentral also signed a 10-year service agreement with Drug Emporium for in-store promotion in 177 brick-and-mortar stores, inclusion in advertising material, in-store pick up of HealthCentral-ordered products, access to Drug Emporium's electronic purchasing system and the opportunity to take advantage of other synergies.