Looks like Canadian drug store chain Jean Coutu Group Inc. 2004 purchase of portions of the American Eckerd and Brooks drugstores from JC Penny really didn’t work out.
Jean Coutu is selling the 1,858 primary East Coast drug stores to U.S. chain Rite Aid Corp. in a cash and stock deal worth $3.4 billion US. Jean Coutu purchased the chains from JC Penny in 2004 for $2.4 billion US and later spent a lot trying to turn them around.
As Jean Coutu struggled and lost 40% of its share price since the sell, JC Penny’s shares have risen 90% as it refocused on department store sales.
