Longs Drugs
 | This article needs to be updated. |
| Founded | 1938 |
|---|---|
| Defunct | 2008 |
| Fate | Acquired by CVS Caremark |
| Headquarters | Walnut Creek, California |
| Products | Pharmacy, Cosmetics, Health and Beauty Aids, General Merchandise, Snacks, 1 Hour Photo |
Longs Drugs was a pharmacy chain store located on the West Coast of the United States. It was founded in 1938 by brothers Thomas and Joseph Long (son-in-law of Marion Barton Skaggs, co-founder of Safeway Inc.), with their first store in Oakland, California. Longs Drugs had over 500 stores located in California, Nevada, and Hawaii; and was headquartered in Walnut Creek, California. On August 12, 2008, Longs announced that they had entered into a definitive agreement under which CVS Caremark would acquire Longs for $71.50 per share in cash for a total purchase price of $2.9 billion including the assumption of debt.[1] In 2009, CVS began re-branding Longs Drug stores to CVS/Pharmacy stores, with the intention to eventually convert all Longs Drugs location to the CVS name, except for the Hawaii stores which will remain under the Longs Drugs name for the indefinite future.
Longs in popular culture
Although a California-based company, Longs has maintained stores in Hawaii long enough to become a local establishment. Its first Hawaii store, in downtown Honolulu, opened March 29, 1954.[2] In 2005, Honolulu Advertiser columnist Lee Cataluna published a short-story collection, Folks You Meet in Longs, and Other Stories.[3] It is based on Cataluna's eponymous play which premiered August 2003 at Kumu Kahua Theater.[4]
According to the San Francisco Chronicle, CVS will retain the Longs Drugs name in the Hawaii stores "because of its high name recognition and the geographical separation."[5] Before the merger, CVS had no full-service stores in Northern California or Hawaii.
Acquisition
On August 12, 2008 Longs Drugs announced that they were being acquired by CVS Caremark, the operator of the national CVS/pharmacy chain of drugstores. CVS is buying the 521 Longs locations to expand its presence on the West Coast, primarily in California. The acquisition also includes access to the Hawaii market. CVS made its first major entry into California with its 2006 acquisition of Southern California based Sav-On Drugs. CVS Caremark will pay a total of $2.54 billion to acquire all outstanding shares of Longs Drugs, and hopes to save upwards of $100 million in 2009 & $140-$150 million in 2010 in expenses from synergies attained from the business combination.[6] On September 12, 2008 the Walgreen Co. stepped in with an offer representing a $ 3.50 per share premium over the cash purchase price offered by CVS.[7] However, Walgreens dropped their offer on October 8, allowing CVS's deal to progress. On October 29, CVS had secured 78.07% of Longs shares, and Longs was merged into CVS the next day on October 30.[8]
References
- ^ http://bigcharts.marketwatch.com/news/articles.asp?guid={8BF352F3-659E-4964-84DB-9B6650B6968A}&newsid=935607946&orig=&time=&symb=CVS&sid=3082&source=htx\http2_mw
- ^ http://investor.shareholder.com/longs/chronology.cfm?id=1
- ^ http://www.booklineshawaii.com/book/bah/04371X.html
- ^ http://www.kumukahua.org/plays33rd.html
- ^ 800 Longs employees to be let go in East Bay
- ^ http://bigcharts.marketwatch.com/news/articles.asp?guid={8BF352F3-659E-4964-84DB-9B6650B6968A}&newsid=935607946&orig=&time=&symb=CVS&sid=3082&source=htx\http2_mw
- ^ http://online.wsj.com/article/SB122126726883530769.html?mod=hpp_us_whats_news
- ^ "CVS Caremark Successfully Completes Tender Offer for Longs Shares". MarketWatch. October 30, 2008. Retrieved November 4, 2008.