Wired News - Fred's Closes Sale of Certain Assets of EntrustRx to CVS

LONDON, UK / ACCESSWIRE / June 6, 2018 / If you want access to our free research report on Fred's, Inc. (NASDAQ: FRED), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=FRED as the Company's latest news hit the wire. On June 04, 2018, the Company announced that it has closed the sale of certain assets of its specialty pharmacy unit, EntrustRx, to a subsidiary of CVS Health Corp. (NYSE: CVS). The purchase consideration was approximately $40 million, plus an amount equal to the value of inventory of EntrustRx. The agreement was previously announced on May 07, 2018, and was subject to certain customary closing conditions. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Fred's and CVS Health most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=FRED

www.active-investors.com/registration-sg/?symbol=CVS

Fred's acquired EntrustRx in a multi-million dollar transaction in 2015. The acquisition helped the Company to further expand its presence in the specialty pharmacy arena.

Cash Proceeds from the Sale will Allow Fred's to Pay Down a Significant Portion of its Debt

Commenting on the announcement, Joe Anto, Interim Chief Executive Officer (CEO) of Fred's, stated that the Company is pleased to conclude the sale of EntrustRx, which is an important step in the Company's plans to monetize non-core assets as part of its broader turnaround efforts. Anto added that the cash proceeds will allow Fred's to pay down a significant portion of its debt and also be used for general corporate purposes.

Anto further added that one of Fred's top priorities for 2018 has been to monetize non-core assets.

Fred's Added Two New Board Members

On May 22, 2018, Dana Goldsmith Needleman and Thomas Zacharias were appointed to the Company's Board of Directors, effective May 20, 2018. The appointments are in connection with the retirement of Mike McMillan, Peter Bocian, and Neeli Bendapudi.

Goldsmith Needleman was serving as a principal of The Cogent Group, a private real estate investment trust (REIT) firm, since 2009. She has been instrumental in the acquisition, development, and disposition of more than $5.0 billion of corporate real estate throughout the United States, with a heavy concentration of retail assets. Zacharias most recently served as President of Zacharias & Co. LLC, a real estate investment and advisory firm that he founded in April 2017, after retiring as Chief Operating Officer (COO) from W. P. Carey Inc., a $10 billion publicly-traded REIT. He has 36 years of corporate management experience and 23 years of board level experience, involving a total of eight companies.

About CVS Health Corp.

Headquartered in Woonsocket, Rhode Island, CVS Health is a one-of-a-kind health care Company that helps patients get the care they need through the channel that works best for them. CVS Health's extensive suite of assets positions to play an important role in solving the cost, quality, and access issues in the evolving health care landscape.

About Fred's, Inc.

Founded in 1947 and headquartered in Memphis, Tennessee, Fred's, together with its subsidiaries, sells general merchandise through its retail discount stores and full service pharmacies. Fred's operates approximately 600 general merchandise and pharmacy stores, including 13 franchised locations, and 3 specialty pharmacy-only locations.

Stock Performance Snapshot

June 05, 2018 - At Tuesday's closing bell, Fred's' stock climbed 6.45%, ending the trading session at $1.65.

Volume traded for the day: 1.96 million shares, which was above the 3-month average volume of 1.39 million shares.

Stock performance in the last month - up 1.23%

After yesterday's close, Fred's' market cap was at $62.53 million.

The stock is part of the Services sector, categorized under the Discount, Variety Stores industry. This sector was up 0.3% at the end of the session.

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