Express Rx to Buy 10 Fred’s Pharmacies

Express Rx of Little Rock, a Southeastern regional pharmacy chain, is joining MHR Fund Management LLC of New York to buy 10 Fred’s pharmacy locations in rural areas across five Southeastern states. 

The sale comes as the discount retailer shutters stores across the country after filing Chapter 11 bankruptcy in September. The pharmacies will continue to operate at their current locations under the Express Rx name.

Express Rx is paying about $7 million for the assets, according to the Wall Street Journal. CEO Galen Perkins declined to confirm the figure in an interview with Arkansas Business on Thursday. The deal is set to close in early November.

“This is an important milestone in our company’s proud history,” Perkins said in a news release announcing the purchase. “We welcome the opportunity to provide high-quality healthcare to Fred’s customers and their communities.”

Perkins said the stores are Fred’s smaller, “express” stores. 

“They’re closer to our current format, between 3,000 and 5,000 SF,” he said. “They’re more in line with what we do already.”

The company is buying the pharmacy businesses and their fixed assets. It will take over leases and operate standalone pharmacies. The deal will more than double Express Rx locations to a total of 18 and raise its workforce of about 60 to more than 100.

“Our goal is to have [customers] walk in and see the same face they’re used to seeing [and have] the comfort of knowing that we’re going to be in business long term. … We really have a passion for these rural areas and providing health care in those areas,” Perkins said.

The deal closing is subject to satisfaction of the conditions set forth in the asset purchase agreement with Fred’s.

The stores that Express Rx plans to acquire are at the following locations:

• 303 N. Hood St., Lake Providence, Louisiana
• 705 Plank Rd. Hwy. 128, Saint Joseph, Louisiana
• 2001 W. Court St., Winnfield, Louisiana
• 1068 Hwy. 61 N., Tunica, Mississippi
• 801 E. Jackson Rd., Union, Mississippi
• 101 W. Sweet Potato St., Vardaman, Mississippi
• 251 S. Washington St., Ripley, Tennessee
• 211 South Main St., Morgantown, Kentucky
• 1128 Second Ave. NE, Fayette, Alabama
• 1360 Military St. S., Hamilton, Alabama