By Ben Unglesbee
Source: Retail Dive
Rite Aid has received — and rejected — a buyout offer from investment firm Spear Point Capital Management, the drugstore retailer confirmed in a press release Thursday.
Rite Aid’s board dismissed the off-market offer as not credible, determining that Spear Point “provided no evidence of financing, required multiple months of exclusivity and then called for Rite Aid to spend months soliciting competing offers,” the company said.
Spear Point’s offer also hinged on none of Rite Aid’s debt coming due and payable upon a change in control, “which contradicts the terms of nearly all of Rite Aid’s debt instruments,” the company also noted, adding that “Spear Point has no track record of acquiring public companies the size and complexity of Rite Aid.”