The Walgreen Co. is acquiring regional drugstore chain USA Drug for $438 million. Walgreen will buy stock in the USA Drug holding company, which owns most of the businesses being acquired in the deal. Walgreen said it expects the transaction to close around September 1st, 2012. The acquired drugstores will operate under their current brand names “in the near term” after the deal closes. Walgreen said that “decisions will be made over time” about how to “harmonize” the brands.

USA Drug – headquartered in Little Rock, Arkansas – was founded in 1968 and has grown to 145 pharmacy locations. The company operates mostly under the May’s and Med X trade names and holds top three market share positions in key markets across Arkansas, Mississippi, Missouri, Oklahoma, and Tennessee. According to Chain Store Guide’s recently-released 2012 Drug Industry Market Share Report, the Tulsa, OK core based-statistical area (CBSA) has USA Drug’s highest concentration of stores with 28. Following the Walgreens acquisition, the combined company will operate 61 pharmacies and have 51.5% market share in Tulsa’s $560+ million prescription drug market.

Currently, USA Drug holds the #3 position in the Tulsa Market with 16.4% of the prescription drug market, while Walgreens holds the top position with a 35.1% share.

Tula, OK CBSA*

*Source: 2012 Chain Store Guide Drug Industry Market Share Report