LITTLE ROCK — A Brooklyn, N.Y.-based company announced Wednesday that it has agreed to buy the assets of a Pine Bluff product distributor that was part of Walgreen Co.’s purchase of the USA Drug chain and keep the operation largely unchanged.
L&R Distributors Inc. said it has entered into an agreement to buy the assets of SAJ Distributors and the private label line Select Brand from Walgreen Co. Walgreens, based in Deerfield, Ill., bought SAJ from LaFrance Holdings Inc. in July as part of its $438 million purchase of the USA Drug chain.
Terms of the agreement between L&R Distributors and Walgreens were not disclosed.
L&R said it will operate the SAJ Distribution Center and offices in Pine Bluff under the SAJ name and retain many of the existing staff who work in customer service, accounting, purchasing and operations.
"L&R will also maintain the existing SAJ sales staff, delivery methods and inventory mix," S&J said in a news release. "This will ensure a ‘no change’ turn-key solution for the existing SAJ family of customers. Over time, L&R’s SAJ Division will introduce new items, categories and unique promotional programs which are currently in place and available to L&R customers across the country."
L&R is a national distributor of beauty and general merchandise products and claims more than 7,000 points of distribution across the country.
Walgreens announced in July that it had purchased the USA Drug regional chain, which includes Super D Drug, May’s Drug, med-X and Drug Warehouse. In September, Walgreen announced that 76 of the 144 USA Drug stores and other brands in Arkansas and six other states would close by November. Twenty-four of the stores closed were in Arkansas.
Walgreens is the nation’s largest drug chain and last year had sales of $72 billion. The company operates 7,890 drug stores in all 50 states, the District of Columbia and Puerto Rico.
USA Drug and the other drugstores in the chain recorded sales of $825 million last year, according to Walgreens.