710060
B223975UNITED
STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
- COMMISSIONERS:
- Robert Pitofsky, Chairman
- Mary L. Azcuenaga
- Janet D. Steiger
- Roscoe B. Starek, III
In the Matter of
CVS CORPORATION, a
corporation, and
REVCO D.S., INC., a
corporation.
Docket No. C-3762
DECISION AND ORDER
The Federal Trade Commission ("Commission"),
having initiated an investigation of the proposed
acquisition of Revco D.S., Inc. ("Revco") by
CVS Corporation ("CVS"), and the respondents
having been furnished thereafter with a copy of a draft
of complaint that the Bureau of Competition presented to
the Commission for its consideration and which, if issued
by the Commission, would charge respondents with a
violation of Section 7 of the Clayton Act, as amended, 15
U.S.C. § 18, and Section 5 of the Federal Trade
Commission Act, as amended, 15 U.S.C. § 45; and
Respondents, their attorneys, and counsel for the
Commission having thereafter executed an agreement
containing a consent order, an admission by the
respondents of all the jurisdictional facts set forth in
the aforesaid draft of complaint, a statement that the
signing of said agreement is for settlement purposes only
and does not constitute an admission by respondents that
the law has been violated as alleged in such complaint,
or that the facts as alleged in such complaint, other
than jurisdictional facts, are true, and waivers and
other provisions as required by the Commission's rules;
and
The Commission having thereafter considered the matter
and having determined that it had reason to believe that
the respondents have violated the said Acts, and that a
complaint should issue stating its charges in that
respect, and having thereupon accepted the executed
consent agreement and placed such agreement on the public
record for a period of sixty (60) days, now in further
conformity with the procedure described in § 2.34
of its Rules, the Commission hereby issues its Complaint,
makes the following jurisdictional findings and enters
the following Order:
- 1. Respondent CVS Corporation is a corporation
organized, existing, and doing business under and
by virtue of the laws of the State of Delaware,
with its office and principal place of business
located at One CVS Drive, Woonsocket, Rhode
Island 02895.
-
- 2. Respondent Revco D.S., Inc. is a corporation
organized, existing, and doing business under and
by virtue of the laws of the State of Delaware,
with its office and principal place of business
located at 1925 Enterprise Parkway, Twinsburg,
Ohio 44087.
-
- 3. The Federal Trade Commission has jurisdiction
of the subject matter of this proceeding and of
the respondents, and the proceeding is in the
public interest.
ORDER
I.
IT IS ORDERED that, as used in this
Order, the following definitions shall apply:
A. "CVS" means CVS Corporation, its
directors, officers, employees, agents and
representatives, predecessors, successors, and assigns;
its subsidiaries, divisions, groups, and affiliates
controlled, directly or indirectly, by CVS, and the
respective directors, officers, employees, agents and
representatives, successors, and assigns of each. CVS,
after consummation of the Acquisition, includes Revco.
B. "Revco" means Revco D.S., Inc., its
directors, officers, employees, agents and
representatives, predecessors, successors, and assigns;
its subsidiaries, divisions, groups, and affiliates
controlled, directly or indirectly, by Revco, and the
respective directors, officers, employees, agents and
representatives, successors, and assigns of each.
C. "Respondents" mean CVS and Revco.
D. "Commission" means the Federal Trade
Commission.
E. "Acquisition" means CVS's proposed
acquisition of all of the outstanding voting securities
of and merger with Revco pursuant to the Agreement and
Plan of Merger dated February 6, 1997.
F. "J.C. Penney" means J.C. Penney Company,
Inc., a corporation organized, existing and doing
business under and by virtue of the laws of the State of
Delaware, with its principal place of business located at
6501 Legacy Drive, Plano, Texas 75024-3698.
G. "Eckerd" means Eckerd Corporation, an
affiliate of J.C. Penney. Eckerd is a corporation
organized, existing and doing business under and by
virtue of the laws of the State of Delaware, with its
principal place of business located at 8333 Bryan Dairy
Road, Largo, Florida 33777.
H. "Medicine Shoppe" means Medicine Shoppe
International, Inc., a corporation organized, existing,
and doing business under and by virtue of the laws of the
State of Delaware, with its executive offices located at
1100 North Lindbergh, St. Louis, Missouri 63132.
I. "Pharmacy Operations" means Pharmacy
Operations, Inc., a wholly owned subsidiary of Medicine
Shoppe. Pharmacy Operations is a corporation organized,
existing, and doing business under and by virtue of the
laws of the State of Delaware, with offices located at
1100 North Lindbergh, St. Louis, Missouri 63132.
J. "Acquirer(s)" means Eckerd, Medicine
Shoppe or Pharmacy Operations, and/or the entity or
entities approved by the Commission to acquire: the
Virginia Assets to be Divested pursuant to Paragraph
II.A.1. of this Order; the Revco Pharmacy Assets pursuant
to Paragraph II.B.1. or the New York Assets to be
Divested pursuant to Paragraph II.B.2. of this Order; the
Revco Virginia Assets pursuant to Paragraph III.A. of
this Order; or the CVS Binghamton Assets pursuant to
Paragraph III.B. of this Order.
K. "Landlord consents" means all consents
from all landlords that are necessary to effect the
complete transfer to the Acquirer(s) of the assets
required to be divested pursuant to this Order.
L. "MSA" means Metropolitan Statistical
Area, which refers to geographic areas as defined by the
United States Department of Commerce, Bureau of the
Census.
M. "Retail Drug Store" means a full-line
retail store that carries a wide variety of prescription
and nonprescription medicines and miscellaneous items,
including, but not limited to, drugs, pharmaceuticals,
patent medicines, sundries, tobacco products, and other
merchandise.
N. "Retail Drug Store Assets" means all
assets constituting the Retail Drug Store business,
excluding those assets pertaining to either the Revco or
CVS trade name, trade dress, trade marks and service
marks, and including, but not limited to:
- 1. leases and properties;
-
- 2. zoning approvals and registrations;
-
- 3. books, records, reports, dockets and lists
relating to the Retail Drug Store business;
-
- 4. Retail Drug Store inventory and storage
capacity;
-
- 5. all records of stock keeping units
("SKUs"), e.g., all forms,
package sizes and other units in which
prescription drugs are sold and which are used in
records of sales;
-
- 6. lists of all customers (including third party
insurers) and all files of names, addresses, and
telephone numbers of the individual customer
contacts, and the unit and dollar amounts of
sales, by product, to each customer;
-
- 7. all pharmacy files, documents, instructions,
papers, books, computer files and records and all
other records in any media relating to the Retail
Drug Store business;
-
- 8. all rights, titles and interests in and to the
contracts entered into in the ordinary course of
business with customers (together with associated
bid and performance bonds), suppliers, sales
representatives, distributors, agents, personal
property lessors, personal property lessees,
licensors, licensees, consignors and consignees,
and all names of prescription drug manufacturers
and distributors under contract with Revco, at
the Acquirer(s)' option;
-
- 9. all machinery, fixtures, equipment, vehicles,
transportation facilities, furniture, tools and
other tangible personal property; and
-
- 10. goodwill, tangible and intangible, utilized
in Retail Drug Stores.
O. "Revco Pharmacy Business" means Revco's
business of selling pharmacy services including
prescription drugs at any of the Retail Drug Stores
listed in Schedule A of this Order, but does not include
Revco's business of selling other products in those
Retail Drug Stores.
P. "Revco Pharmacy Assets" means all assets
constituting the Revco Pharmacy Business, excluding those
assets pertaining to the Revco trade names, trade dress,
trade marks and service marks, and including but not
limited to:
- 1. Leases, at Medicine Shoppe's option;
-
- 2. zoning approvals and registrations, at
Medicine Shoppe's option;
-
- 3. books, records, manuals, and operations
reports, relating to the Revco Pharmacy Business;
-
- 4. inventory instructions, or, at Medicine
Shoppe's option, lists of SKUs, i.e., all
forms, package sizes and other units in which
prescription drugs are sold and which are used in
records of sales and inventories;
-
- 5. lists of all prescription drug customers,
including but not limited to third party
insurers, including all files of names,
addresses, and telephone numbers of the
individual customer contacts, the unit and dollar
amounts of sales, by product, to each customer,
and store profit and loss statement(s); and
-
- 6. goodwill, tangible and intangible, utilized in
the sale of prescription drugs.
Q. "Virginia Assets to be Divested" means
the Revco Retail Drug Store Assets described in Schedule
B of this Order.
R. "Revco Virginia Assets" means all of
Revco's Retail Drug Store Assets located in the State of
Virginia.
S. "New York Assets to be Divested" means
the Revco Retail Drug Store Assets described in Schedule
A of this Order.
T. "CVS Binghamton Assets" means all of the
CVS Retail Drug Store Assets located in the Binghamton,
New York MSA.
U. "Eckerd Agreement" means the Purchase and
Sale Agreement between Eckerd and CVS executed on May 16,
1997, for the divestiture by Respondents to Eckerd of the
Virginia Assets to be Divested.
V. "Medicine Shoppe Agreement" means the
Purchase and Sale Agreement between Pharmacy Operations
or Medicine Shoppe and CVS executed on May 21, 1997, for
the divestiture by Respondents to Medicine Shoppe of the
Revco Pharmacy Assets to be Divested.
II.
IT IS FURTHER ORDERED that:
A. Respondents shall divest, absolutely and in good
faith, the Virginia Assets to be Divested to:
- 1. Eckerd, in accordance with the Eckerd
Agreement dated May 16, 1997, no later than,
-
- a. ten (10) days after the date on which
this Order becomes final, or
- b. four (4) months after acceptance of
the Agreement Containing Consent Order by
the Commission,
- whichever is later; or
-
- 2. an Acquirer that receives the prior approval
of the Commission and only in a manner that
receives the prior approval of the Commission,
within three (3) months after the date on which
this Order becomes final;
provided that the closing date of the
Eckerd Agreement or any other agreement pursuant to which
the Virginia Assets to be Divested are divested to an
Acquirer shall not occur until after Respondents have
obtained all required Landlord Consents.
B. Respondents shall divest, absolutely and in good
faith, either:
- 1. the Revco Pharmacy Assets to Medicine Shoppe
or Pharmacy Operations in accordance with the
Medicine Shoppe Agreement May 21, 1997, no
later than,
-
- a. ten (10) days after the date on which
this Order becomes final, or
-
- b. four (4) months after acceptance of
the Agreement Containing Consent Order by
the Commission,
- whichever is later; or
-
- 2. the New York Assets to be Divested to an
Acquirer that receives the prior approval of the
Commission and only in a manner that receives the
prior approval of the Commission, within three
(3) months after the date on which this Order
becomes final;
provided that the closing date of the
Medicine Shoppe Agreement or any other agreement pursuant
to which the New York Assets to be Divested are divested
to an Acquirer shall not occur until after Respondents
have obtained all required Landlord Consents.
C. The purpose of the divestitures described herein is
to ensure the continued operation of the divestiture
assets as assets engaged in the retail sale of pharmacy
services to third party payors, and to remedy any
lessening of competition resulting from the Acquisition
as alleged in the Commission's complaint.
III.
IT IS FURTHER ORDERED that:
A. If Respondents fail to divest absolutely and in
good faith the Virginia Assets to be Divested pursuant to
Paragraph II.A. of this Order, the Commission may appoint
a trustee to divest the Revco Virginia Assets.
B. If Respondents fail to divest absolutely and in
good faith either the New York Assets to be Divested or
the Revco Pharmacy Assets pursuant to Paragraph II.B. of
this Order, the Commission may appoint a trustee to
divest the CVS Binghamton Assets.
C. In the event that the Commission or the Attorney
General brings an action pursuant to § 5(1) of
the Federal Trade Commission Act, 15 U.S.C. § 45(1),
or any other statute enforced by the Commission,
Respondents shall consent to the appointment of a trustee
in such action. Neither the appointment of a trustee nor
a decision not to appoint a trustee under this Paragraph
shall preclude the Commission or the Attorney General
from seeking civil penalties or any other relief
available to it, including a court-appointed trustee
pursuant to § 5(1) of the Federal Trade
Commission Act, or any other statute enforced by the
Commission, for any failure by Respondents to comply with
this Order.
D. The trustee appointed to accomplish any divestiture
pursuant to Paragraphs III.A. or III.B. may be the same
person. If a trustee is appointed by the Commission or a
court pursuant to Paragraphs III.A. or III.B. of this
Order, Respondents shall consent to the following terms
and conditions regarding the trustee's powers, duties,
authority, and responsibilities:
- 1. The Commission shall select the trustee(s),
subject to the consent of Respondents, which
consent shall not be unreasonably withheld. The
trustee shall be a person with experience and
expertise in acquisitions and divestitures. If
Respondents have not opposed, in writing,
including the reasons for opposing, the selection
of any proposed trustee within ten (10) days
after notice by the staff of the Commission to
Respondents of the identity of any proposed
trustee, Respondents shall be deemed to have
consented to the selection of the proposed
trustee.
-
- 2. Subject to the prior approval of the
Commission, the trustee shall have the exclusive
power and authority to accomplish the
divestitures described in Paragraphs III.A. and
III.B.
-
- 3. Within ten (10) days after appointment of the
trustee, Respondent shall execute a trust
agreement that, subject to the prior approval of
the Commission, and in the case of a
court-appointed trustee, of the court, transfers
to the trustee all rights and powers necessary to
permit the trustee to effect each divestiture
required by this Order.
-
- 4. The trustee shall have twelve (12) months from
the date the Commission approves the trust
agreement described in Paragraph III.D.3. to
accomplish each divestiture, which shall be
subject to the prior approval of the Commission.
If, however, at the end of the twelve (12) month
period, the trustee has submitted a plan for each
divestiture required by this Order or believes
that each divestiture required by this Order can
be achieved within a reasonable time, then that
divestiture period may be extended by the
Commission, or, in the case of a court-appointed
trustee, by the court; provided, however, the
Commission may extend the period for each
divestiture only two (2) times.
-
- 5. The trustee shall have full and complete
access to the personnel, books, records and
facilities related to the Revco Virginia Assets
and the CVS Binghamton Assets or to any other
relevant information, as the trustee may request.
Respondents shall develop such financial or other
information as such trustee may request and shall
cooperate with the trustee. Respondents shall
take no action to interfere with or impede the
trustee's accomplishment of each divestiture. Any
delays in any divestiture caused by Respondents
shall extend the time for that divestiture under
this Paragraph in an amount equal to the delay,
as determined by the Commission or, for a
court-appointed trustee, by the court.
-
- 6. The trustee shall use his or her best efforts
to negotiate the most favorable price and terms
available in each contract that is submitted to
the Commission, subject to Respondents' absolute
and unconditional obligation to make each
divestiture required by this Order at no minimum
price. Each divestiture shall be made in the
manner consistent with the terms of this Order;
provided, however, if the trustee receives bona
fide offers from more than one acquiring entity,
and if the Commission determines to approve more
than one such acquiring entity, the trustee shall
divest to the acquiring entity or entities
selected by Respondents from among those approved
by the Commission.
-
- 7. The trustee shall serve, without bond or other
security, at the cost and expense of Respondents,
on such reasonable and customary terms and
conditions as the Commission or a court may set.
The trustee shall have the authority to employ,
at the cost and expense of Respondents, and at
reasonable fees, such consultants, accountants,
attorneys, investment bankers, business brokers,
appraisers, and other representatives and
assistants as are necessary to carry out the
trustee's duties and responsibilities. The
trustee shall account for all monies derived from
each divestiture and all expenses incurred. After
approval by the Commission and, in the case of a
court-appointed trustee, by the court, of the
account of the trustee, including fees for his or
her services, all remaining monies shall be paid
at the direction of the Respondents, and the
trustee's power shall be terminated. The
trustee's compensation shall be based at least in
significant part on a commission arrangement
contingent on the trustee's accomplishing each
divestiture required by Paragraphs III.A. and
III.B.
-
- 8. Respondents shall indemnify the trustee and
hold the trustee harmless against any losses,
claims, damages, liabilities, or expenses arising
out of, or in connection with, the performance of
the trustee's duties, including all reasonable
fees of counsel and other expenses incurred in
connection with the preparation for, or defense
of any claim, whether or not resulting in any
liability, except to the extent that such
liabilities, losses, damages, claims, or expenses
result from misfeasance, gross negligence,
willful or wanton acts, or bad faith by the
trustee.
-
- 9. If the trustee ceases to act or fails to act
diligently, a substitute trustee shall be
appointed in the same manner as provided in this
Paragraph.
-
- 10. The Commission or, in the case of a
court-appointed trustee, the court, may on its
own initiative or at the request of the trustee
issue such additional orders or directions as may
be reasonably necessary or appropriate to
accomplish each divestiture required by this
Order.
-
- 11. The trustee shall also divest such additional
ancillary assets and businesses and effect such
arrangements as are necessary to assure the
marketability and the viability and
competitiveness of the Revco Virginia Assets and
the CVS Binghamton Assets.
-
- 12. The trustee shall have no obligation or
authority to operate or maintain the Revco
Virginia Assets or the CVS Binghamton Assets.
-
- 13. The trustee shall report in writing to
Respondents and the Commission every sixty (60)
days concerning the trustee's efforts to
accomplish each divestiture required by this
Order.
IV.
IT IS FURTHER ORDERED that:
A. Pending the divestiture of the Virginia Assets to
be Divested pursuant to Paragraph II.A. and either the
Revco Pharmacy Assets or the New York Assets to be
Divested pursuant to Paragraph II.B., the Revco Virginia
Assets pursuant to Paragraph III.A., or the CVS
Binghamton Assets pursuant to Paragraph III.B.,
Respondents shall take such actions as are necessary to
maintain the viability, marketability and competitiveness
of all of these assets, and to prevent the destruction,
removal, wasting, deterioration, or impairment of any of
these assets except for ordinary wear and tear.
B. Respondents shall comply with all terms of the
Asset Maintenance Agreement, attached to this Order and
made a part hereof as Appendix I. The Asset Maintenance
Agreement shall continue in effect until such time as all
the divestitures required by this Order have been
accomplished.
V.
IT IS FURTHER ORDERED that within
thirty (30) days after the date this Order becomes final
and every thirty (30) days thereafter until Respondents
have fully complied with the provisions of Paragraphs II.
and III. of this Order, Respondents shall submit to the
Commission verified written reports setting forth in
detail the manner and form in which it intends to comply,
is complying, and has complied with the requirements of
this Order. Respondents shall include in their compliance
reports, among other things that are required from time
to time, a full description of the efforts being made to
comply with Paragraphs II. and III. of the Order,
including a description of all substantive contacts or
negotiations for each divestiture and the identity of all
parties contacted. Respondents shall include in their
compliance reports copies of all written communications
to and from such parties, all internal memoranda, and all
reports and recommendations concerning each divestiture.
VI.
IT IS FURTHER ORDERED that
Respondents shall notify the Commission at least thirty
(30) days prior to any proposed change in the corporate
Respondents such as dissolution, assignment, sale
resulting in the emergence of a successor corporation, or
the creation or dissolution of subsidiaries or any other
change in the corporation that may affect compliance
obligations arising out of the Order.
VII.
IT IS FURTHER ORDERED that, for the
purpose of determining or securing compliance with this
Order, Respondents shall permit any duly authorized
representative of the Commission:
- A. Access, during office hours and in the
presence of counsel, to inspect and copy all
books, ledgers, accounts, correspondence,
memoranda and other records and documents in the
possession or under the control of Respondents
relating to any matters contained in this Order;
and
-
- B. Upon five days' notice to Respondents and
without restraint or interference from
Respondents, to interview officers, directors, or
employees of Respondents.
By the Commission.
Donald S. Clark
Secretary
SEAL:
ISSUED: August 13, 1997
SCHEDULE A
REVCO NEW YORK STORE LISTING
Revco Store Number 2000
523 Hooper Road
Endwell, NY 13760 |
Revco Store Number 2002
133 Front Street
Vestal, NY 13850 |
|
|
Revco Store Number 2003
4700 Vestal Parkway East
Vestal, NY |
Revco Store Number 2005
1318 Front Street
Binghamton, NY 13901 |
|
|
Revco Store Number 2007
1183-85 Vestal Avenue
Binghamton, NY 13903 |
Revco Store Number 2020
310 Exchange Street
Endicott, NY 13760 |
|
|
SCHEDULE B
REVCO VIRGINIA STORE LISTING
Revco Store Number 842
Interstate Rt 40 & 46
Blackstone, VA 23824 |
Revco Store Number 2380
4408 West Hundred Road
Chester, VA 23831 |
|
|
Revco Store Number 1160
Colonial Square Shopping Center
12 Colonial Square
Colonial Heights VA 23834 |
Revco Store Number 389
220 Market Drive
Emporia, VA 23847 |
|
|
Revco Store Number 972
University Square Shopping Center
20825 Woodpecker Road
Ettrick, VA 23803 |
Revco Store Number 4513
Patrick Henry Center
1506 S. Main Street
Farmville, VA 23901 |
|
|
Revco Store Number 998
5207 Plaza Drive
Hopewell, VA 23860 |
Revco Store Number 4001
115 Brunswick Square Ct.
Lawrenceville, VA 23868 |
|
|
Revco Store Number 1473
Tanbark Plaza Shopping Center
74 Tanbark Plaza
Lovingston, VA 22949 |
Revco Store Number 2519
7199 Stonewall Pkwy.
Mechanicsville, VA 23111 |
|
|
Revco Store Number 2522
Atlee Square Shopping Center
9159 Atlee Road
Mechanicsville, VA 23116 |
Revco Store Number 2517
Rockwood Square
10163 Hull Street Road
Midlothian, VA 23113 |
|
|
Revco Store Number 187
4310 Westgate Drive
Petersburg, VA 23803 |
Revco Store Number 4504
2733 S. Crater Road
Petersburg, VA 23805 |
|
|
Revco Store Number 2754
9100 Pocahontas Trail
Providence Forge, VA 23140 |
Revco Store Number 2755
New Kent Crossing Shopping Center
2587 New Kent Hwy.
Quinton, VA 23141 |
|
|
Revco Store Number 383
12000 Ridgefield Pkwy.
Richmond, VA 23233 |
Revco Store Number 390
6401 Jahnke Road
Richmond, VA 23225 |
|
|
Revco Store Number 398
2805 West Broad Street
Richmond, VA 23230 |
Revco Store Number 505
7127 Staples Mill Road
Richmond, VA 23228 |
|
|
Revco Store Number 538
Meadowwood Square
5116 Richmond Henrico Turnpike
Richmond, VA 23227 |
Revco Store Number 551
326 East Broad Street
Richmond, VA 23219 |
|
|
Revco Store Number 553
Cary Village Shopping Center
3142 West Cary Street
Richmond, VA 23221 |
Revco Store Number 1158
Glen Lea Shopping Center
3824 Mechanicsville Pike
Richmond, VA 23223 |
|
|
Revco Store Number 1313
6011 Nine Mile
Richmond, VA 23223 |
Revco Store Number 1319
Willow Place Shopping Center
5440 West Broad
Richmond, VA 23230 |
|
|
Revco Store Number 1436
2917 North Avenue
Richmond, VA 23222 |
Revco Store Number 2551
Robious Hall Shopping Center
10030 Robious Road
Richmond, VA 23235 |
|
|
Revco Store Number 4019
Hungarybrook Shopping Center
1292 Concord Avenue
Richmond, VA 23228 |
Revco Store Number 4391
Irongate Village Shopping Center
6423 Iron Bridge Road
Richmond, VA 23234 |
|
|
Revco Store Number 4578
Quicoccasin Station
8920 Quioccasin Road
Richmond, VA 22560 |
Revco Store Number 4585
1102 Courthouse Road
Richmond, VA 23236 |
|
|
Revco Store Number 4562
While Oak Shopping Center
1840 Tappahannock Blvd.
Tappahannock, VA 22560 |
Revco Store Number 4000
West Point Square
100 Winter Street Unit 105
West Point, VA 23181 |
|
|
Revco Store Number 4387
Pantops Center
540 Pantops Center
Charlottesville, VA 22911 |
Revco Store Number 194
1367 Kempsville Road
Chesapeake, VA 23320 |
|
|
Revco Store Number 313
Liberty Plaza
1800 Liberty Street
Chesapeake, VA 23324 |
Revco Store Number 350
4321 Indian River Road
Chesapeake, VA 23325 |
|
|
Revco Store Number 1140
Poplar Hill Plaza
3138 Western Branch Blvd.
Chesapeake, VA 23321 |
Revco Store Number 1186
Wilson Village Shopping Center
328 Battlefield Blvd. S.
Chesapeake, VA 23320 |
|
|
Revco Store Number 4003
Las Gaviotas Shopping Center
1245 Cedar Road, Suite B
Chesapeake, VA 23320 |
Revco Store Number 4020
Taylor Road Plaza
3325 Taylor Road, Suite 118
Chesapeake, VA 23321 |
|
|
Revco Store Number 4420
Centersville Crossing Shopping Center
413 Centerville Turnpike
Chesapeake, VA 23320 |
Revco Store Number 4530
Woodford Square Shopping Center
701-D North Battlefield
Chesapeake, VA 23320 |
|
|
Revco Store Number 4552
2313 S. Military Hwy.
Chesapeake, VA 23320 |
Revco Store Number 4607
3005 Old Mill Road
Chesapeake, VA 23323 |
|
|
Revco Store Number 4541
Southhampton Shopping Center
1332 Armory Drive
Franklin, VA 23851 |
Revco Store Number 1268
Heritage Square Shopping Center
4324 Geo. Washington Memorial Highway
Grafton, VA 23692 |
|
|
Revco Store Number 426
Kecoughtan Shopping Center
3857 Kecoughtan Road
Hampton, VA 23669 |
Revco Store Number 1073
1955 E. Pembroke Avenue
Hampton, VA 23663 |
|
|
Revco Store Number 1384
4111 West Mercury Blvd.
Hampton, VA 23666 |
Revco Store Number 4326
2305 Kecoughtan Road
Hampton, VA 23661 |
|
|
Revco Store Number 4679
Big Bethel Road and Hampton Road ParkwayHampton,
VA 23666 |
Revco Store Number 2741
York River Shopping Center
2318 York Crs. Drive Pob 1106
Hayes, VA 23072 |
|
|
Revco Store Number 621
Newport Square Shopping Center
846 Newport Square Shop Center
Newport News, VA 23601 |
Revco Store Number 1096
Newmarket Plaza Shopping Center
605 Newmarket Drive Newmarket Plaza
Newport News, VA 23605 |
|
|
Revco Store Number 1143
14865 Warwick Blvd.
Newport News, VA 23608 |
Revco Store Number 1613
13271 Warwick Blvd.
Newport News, VA 23602 |
|
|
Revco Store Number 2589
Southeast Shopping Center
2305 Jefferson Avenue
Newport News, VA 23607 |
Revco Store Number 4022
Richneck Center
12917 Jefferson Avenue
Newport News, VA 23602 |
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Revco Store Number 4501
10451 Jefferson Avenue
Newport News, VA 23605 |
Revco Store Number 117
Downtown Plaza Shopping Center
32 Downtown Plaza S/C
Norfolk, VA 23510 |
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Revco Store Number 431
Southern Shopping Center
No. 2 Southern S/C
Norfolk, VA 23505 |
Revco Store Number 493
Midtown Shopping Center
7628 Granby Street
Norfolk, VA 23505 |
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Revco Store Number 500
Colley Village Shopping Center
2301 Colley Avenue
Norfolk, VA 23517 |
Revco Store Number 550
6204-H N. Military Hwy.
Norfolk, VA 23518 |
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Revco Store Number 595
742-A West 21st Street
Norfolk, VA 23517 |
Revco Store Number 703
Sewells Point Shopping Center
2330 Azalea Garden Road
Norfolk, VA 23513 |
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Revco Store Number 715
1101 East Little Creek Road
Norfolk, VA 23518 |
Revco Store Number 882
Ocean View Shopping Center
163 West Ocean View Avenue
Norfolk, VA 23503 |
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Revco Store Number 1029
The Monticello Building
258 Granby Street
Norfolk, VA 23510 |
Revco Store Number 1068
Suburban Park Shopping Center
7526 Granby Street
Norfolk, VA 23505 |
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Revco Store Number 1097
1853 East Little Creek Road
Norfolk, VA 23518 |
Revco Store Number 2375
3212 Tidewater Road
Norfolk, VA 23509 |
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Revco Store Number 2574
890 Kempsville Road
Norfolk, VA 23502 |
Revco Store Number 4009
475 Wythe Creek Road
Poquoson, VA 23662 |
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Revco Store Number 750
5788 Churchland Blvd.
Portsmouth, VA 23703 |
Revco Store Number 871
3116 High Street
Portsmouth, VA 23707 |
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Revco Store Number 1061
3531 Airline Blvd.
Portsmouth, VA 23701 |
Revco Store Number 1113
326 High Street
Portsmouth, VA 23704 |
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Revco Store Number 2704
2004 Victory Blvd.
Portsmouth, VA 23702 |
Revco Store Number 4327
Manor Village Shopping Center
6219 Portsmouth Blvd.
Portsmouth, VA 23701 |
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Revco Store Number 835
Smithfield Plaza Shopping Center
1280 Smithfield Plaza
Smithfield, VA 23430 |
Revco Store Number 1112
Holland Plaza Shopping Center
1240 Holland Road
Suffolk, Va 23434 |
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Revco Store Number 1376
571 East Constance Road
Suffolk, VA 23434 |
Revco Store Number 4385
Suffolk Shopping Center
1405 North Main Street
Suffolk, VA 23434 |
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Revco Store Number 100
1949 Lynnhaven Parkway
Virginia Beach, VA 23456 |
Revco Store Number 109
4221 Pleasant Valley Road
Virginia Beach, VA 23464 |
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Revco Store Number 113
1577 General Booth Blvd.
Virginia Beach, VA 23454 |
Revco Store Number 116
Linkhorn Shopping Center
980 Laskin Road
Virginia Beach, VA 23451 |
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Revco Store Number 341
6531 College Park Square
Virginia Beach, VA 23464 |
Revco Store Number 344
3333 Virginia Beach Blvd.
Virginia Beach, VA 23452 |
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Revco Store Number 374
Fairfield Shopping Center
5232 Fairfield S/C
Virginia Beach, VA 23464 |
Revco Store Number 440
Holland Shopping Center
4324 Holland Road
Virginia Beach, VA 23452 |
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Revco Store Number 464
Kemps River Crossing
1309 Fordham Drive
Virginia Beach, VA 23464 |
Revco Store Number 603
Hilltop North Shopping Center
750 Hilltop North S/C
Virginia Beach, VA 23451 |
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Revco Store Number 787
1075 Independence Blvd.
Virginia Beach, VA 23455 |
Revco Store Number 881
Birchwood Mall
3756 Virginia Beach Blvd.
Virginia Beach, VA 23452 |
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Revco Store Number 883
880 S. Military Hwy.
Virginia Beach, VA 23464 |
Revco Store Number 1188
Pembroke Meadows Shopping Center
748 Independence Blvd.
Virginia Beach, VA 23455 |
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Revco Store Number 1183
5610 Princess Anne Road
Virginia Beach, VA 23462 |
Revco Store Number 1110
2356-C Virginia Beach Blvd.
Virginia Beach, VA 23454 |
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Revco Store Number 1200
3600 South Plaza Trail
Virginia Beach, VA 23452 |
Revco Store Number 1396
Great Neck Shopping Center
1216 Great Neck Village S/C
Virginia Beach, VA 23454 |
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Revco Store Number 1656
Virginia Beach Blvd. and Dorset Street
Virginia Beach, VA 23462 |
Revco Store Number 2725
2005 Sandbridge Road #101
Virginia Beach, VA 23456 |
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Revco Store Number 4406
1012 Fallbrook Bend
Virginia Beach, VA 23455 |
Revco Store Number 45542
Shipp's Corner Shopping Center
3208 Holland Road, Suite 11
Virginia Beach, VA 23456 |
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Revco Store Number 4555
Birdneck Shopping Center
1077 Virginia Beach Blvd.
Virginia Beach, VA 23451 |
Revco Store Number 4599
Lake Shores Plaza Shopping Center
5193 Shore Drive #109
Virginia Beach, VA 23455 |
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Revco Store Number 382
Governor's Green Shopping Center
4511-K John Tyler Hwy.
Williamsburg, VA 23185 |
Revco Store Number 1147
James-York Shopping Center
701 Merrimac Trail
Williamsburg, VA 23185 |
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Revco Store Number 2573
124 Waller Mill Road
Williamsburg, VA 23185 |
Revco Store Number 1625
Shoppes at Yorktown
US 17 & Goodwin Neck Road
York, VA 23692 |
APPENDIX I
UNITED STATES OF
AMERICA
BEFORE FEDERAL TRADE COMMISSION
In the Matter of
CVS CORPORATION, a
corporation, and
REVCO D.S., INC., a corporation.
File No. 971-0060
ASSET MAINTENANCE AGREEMENT
This Asset Maintenance Agreement
("Agreement") is by and between CVS Corporation
("CVS"), a corporation organized, existing, and
doing business under and by virtue of the laws of the
State of Delaware, with its office and principal place of
business located at One CVS Drive, Woonsocket, Rhode
Island 02895; Revco D.S., Inc. ("Revco"), a
corporation organized, existing, and doing business under
and by virtue of the laws of the State of Delaware, with
its office and principal place of business located at
1925 Enterprise Parkway, Twinsburg, Ohio 44087
(collectively "Proposed Respondents"); and the
Federal Trade Commission ("Commission"), an
independent agency of the United States Government,
established under the Federal Trade Commission Act of
1914, 15 U.S.C. § 41, et seq. (collectively
"the Parties").
PREMISES
WHEREAS, CVS has proposed to acquire
all of the outstanding voting securities of and to merge
(through a wholly-owned subsidiary) with Revco D.S.,
Inc., pursuant to an agreement and plan of merger dated
February 6, 1997 ("the proposed Acquisition");
and
WHEREAS, the Commission is now
investigating the proposed Acquisition to determine if it
would violate any of the statutes the Commission
enforces; and
WHEREAS, if the Commission accepts
the attached Agreement Containing Consent Order
("Consent Order"), the Commission is required
to place it on the public record for a period of sixty
(60) days for public comment and may subsequently either
withdraw such acceptance or issue and serve its Complaint
and its Decision and final Order in disposition of the
proceeding pursuant to the provisions of Section 2.34 of
the Commission's Rules; and
WHEREAS, the Commission is concerned
that if an agreement is not reached preserving the status
quo ante of the Revco Virginia Assets, the
Virginia Assets to be Divested, the Revco Pharmacy
Assets, the New York Assets to be Divested, and the CVS
Binghamton Assets as described in the attached Consent
Order (hereinafter sometimes referred to as
"Assets") during the period prior to their
divestiture, any divestiture resulting from any
administrative proceeding challenging the legality of the
Acquisition might not be possible, or might produce a
less than effective remedy; and
WHEREAS, the Commission is concerned
that prior to any divestitures to the Acquirer(s)
approved by the Commission, it may be necessary to
preserve the continued viability and competitiveness of
the Assets; and
WHEREAS, the purpose of this
Agreement and of the Consent Order is to preserve the
Assets pending the divestitures to the Acquirer(s)
approved by the Commission under the terms of the Order,
in order to remedy any anticompetitive effects of the
proposed Acquisition; and
WHEREAS, Proposed Respondents
entering into this Agreement shall in no way be construed
as an admission by Proposed Respondents that the proposed
Acquisition is illegal; and
WHEREAS, Proposed Respondents
understand that no act or transaction contemplated by
this Agreement shall be deemed immune or exempt from the
provisions of the antitrust laws or the Federal Trade
Commission Act by reason of anything contained in this
Agreement.
NOW, THEREFORE, in consideration of
the Commission's agreement that at the time it accepts
the Consent Order for public comment it will grant early
termination of the Hart-Scott-Rodino waiting period, the
Parties agree as follows:
TERMS OF AGREEMENT
1. Proposed Respondents agree to execute, and upon its
issuance to be bound by, the attached Consent Order. The
Parties further agree that each term defined in the
attached Consent Order shall have the same meaning in
this Agreement.
2. Proposed Respondents agree that from the date
Proposed Respondents sign this Agreement until the
earlier of the dates listed in subparagraphs 2.a. and
2.b., Proposed Respondents will comply with the
provisions of this Agreement:
- a. three (3) business days after the Commission
withdraws its acceptance of the Consent Order
pursuant to the provisions of Section 2.34 of the
Commission's Rules; or
-
- b. the date the divestitures as set out in the
Consent Order have been completed.
3. Proposed Respondents shall maintain the viability
and marketability of the Assets, and shall not cause the
wasting or deterioration of the Assets, nor shall they
sell, transfer, encumber or otherwise impair their
marketability or viability.
4. Proposed Respondents shall maintain the
competitiveness of the Assets. This includes, but is not
limited to, maintaining promotions and discount policies,
and continuing specific store services (such as, for
example, hours of operation and operation of specific
departments). In particular, Proposed Respondents shall
continue to offer to customers who obtain pharmacy
services at the Assets the same type and quality of
pharmacy services that are offered at the Proposed
Respondents' retail drug stores that are not subject to
the Consent Order's divestiture provisions.
5. Should the Commission seek in any proceeding to
compel Proposed Respondents to divest themselves of the
Assets or to seek any other injunctive or equitable
relief, Proposed Respondents shall not raise any
objection based upon the expiration of the applicable
Hart-Scott-Rodino Antitrust Improvements Act waiting
period or the fact that the Commission has not sought to
enjoin the proposed Acquisition. Proposed Respondents
also waive all rights to contest the validity of this
Agreement.
6. For the purpose of determining or securing
compliance with this Agreement, subject to any legally
recognized privilege, and upon written request with five
(5) days' notice to Proposed Respondents and to their
principal office(s), Proposed Respondents shall permit
any duly authorized representative or representatives of
the Commission:
- a. access during the office hours of Proposed
Respondents, in the presence of counsel, to
inspect and copy all books, ledgers, accounts,
correspondence, memoranda and other records and
documents in the possession or under the control
of Proposed Respondents relating to compliance
with this Agreement; and
-
- b. to interview officers or employees of Proposed
Respondents, who may have counsel present,
regarding any such matters.
7. This Agreement shall not be binding until approved
by the Commission.
Signed this day of , 1997.
CVS CORPORATION, a corporation
By: ___________________________
Zenon Paul Lankowsky
Vice President, Secretary
and General Counsel
CVS Corporation
___________________________
Ronan P. Harty, Esquire
Davis Polk & Wardwell
Counsel for Respondent
REVCO D.S., INC., a corporation
By:
Jack A. Staph
Senior Vice President
General Counsel and
Secretary
Revco D.S., Inc.
By:
Louis R. Sernoff, Esquire
Baker & Hostetler
Counsel for Revco D.S., Inc.
FEDERAL TRADE COMMISSION
By: ___________________________
Stephen C. Calkins
General Counsel
Consent agreement accepted for public comment by the
Commission on May 29, 1997.
Donald S. Clark, Secretary
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