Fred's $40m deal with CVS closes

Fred's reported Monday that it has completed the sale of its specialty pharmacy business to Advanced Care Scripts, an affiliate of CVS Health.

Fred's reported Monday that it has completed the sale of its specialty pharmacy business to Advanced Care Scripts, an affiliate of CVS Health. In a press release, Fred's said "the aggregate consideration paid was $40 million, plus an amount equal to the value of inventory of EntrustRx." Fred's interim CEO, Joe Anto, noted the deal is a key step in the company's plans "to monetize non-core assets as part of our broader turnaround efforts." The proceeds of the sale will be used to pay down a large share of the company's debt and also for general corporate purposes, Anto said.