J.C. Penney Co. expects to receive
initial bids today for its Eckerd drugstore chain, the Wall
Street Journal reported, citing people familiar with the
situation.
The unit might sell for as much as $5 billion, the newspaper
said. Probable bidders include Woonsocket-based CVS Corp. and Jean Coutu Group
Inc., a Canadian drugstore chain that owns Brookstone drugstores
in the United States, the newspaper said. CVS may be pairing with buyout
firm Kohlberg Kravis Roberts & Co., while Jean Coutu might join
with Blackstone Group for the bids, the paper said, citing people
familiar with the matter.
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The company decided to sell Eckerd as the unit’s weak
performance continues to jeopardize the parent’s financial
turnaround, the newspaper said. J.C. Penney paid $2.5 billion in
cash and stock for Eckerd in late 1996.
Rite Aid Corp. and Albertson’s Inc., a food-and-drug
retailer, might be other potential bidders for the 2,700-store
chain, the paper said.
Representatives at J.C. Penney, CVS, Jean Coutu, Rite Aid
and Albertson’s weren’t available before business hours. Messages left by Bloomberg News at Kohlberg Kravis and Blackstone Group
before business hours weren’t immediately returned.
Bloomberg News
