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KKR moves in on US drugstore chain Eckerd

European buy-out firm CVC and US private equity firm Kohlberg Kravis Roberts (KKR) are to make an initial indication of interest for Eckerd, the US drugstore chain that is part of JP Penney. The sale is expected to raise somewhere between $3.5bn and $5bn.

Canadian drugstore chain, Jean Coutu, is also expected to secure private equity backing in an initial indication of interest for Eckerd, according to the Financial Times. Other large players in the drugstore landscape are believed to be seeking financial sponsorship in order to bid for the company, including Rite-Aid and Wahlgreen.

Eckerd consists of more than 2,700 stores across the US and accounts for more than 40 per cent of JC Penny’s sales. But JC Penney decided to sell Eckerd earlier this year when the chain’s poor performance had become a drag on its profits.

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