Maxi Drug Acquires 80 Osco Drug Stores

Maxi Drug, Inc., a wholly owned subsidiary of Longueuil, Quebec-based The Jean Coutu Group (PJC) Inc., acquired from Boise, Idaho-based Albertson’s, Inc., one of the world’s largest food and drug retailers, 80 Osco Drug stores in Maine, Massachusetts and New Hampshire. The sale was completed on January 31, 2002 and the purchase price was approximately US$240 million. The Jean Coutu Group already owns the Brooks Pharmacy chain in New England.

At the same time, The Jean Coutu Group entered into a US$310 million credit agreement with a syndicate of lenders led by National Bank of Canada, and comprised of Bank of Montreal, Royal Bank of Canada, The Bank of Nova Scotia, Toronto-Dominion Bank, Caisse centrale Desjardins and The Bank of Tokyo-Mitsubishi, Ltd.

The Jean Coutu Group was represented by Yvon Martineau (securities) and Marc Novello (private financing) of Fasken Martineau DuMoulin LLP in Montreal, with the assistance of Dennis White and James Doherty of Sullivan & Worcester LLP in Boston. Albertson’s was represented by Theodore Kozloff, Stephen Berkman and James Hsu of Skadden, Arps, Slate, Meagher & Flom LLP in San Francisco.

J. Michel Deschamps, Keith Wilson and Richard O’Doherty (financial services) of McCarthy Tétrault LLP in Montreal acted for National Bank of Canada and the bank syndicate, with the assistance of Bryan Hall and Roger Chari of Fried, Frank, Harris, Shriver & Jacobson in New York.