Walgreens will acquire Duane Reade from affiliates of Oak Hill Capital Partners in a cash transaction for a total enterprise value of $1.075 billion, including the assumption of debt.

The transaction will include all 257 Duane Reade stores located in the New York City area, as well as the corporate office and two distribution centers. Walgreens purchased Duane Reade with existing cash and anticipates the transaction will close by August 31.

Duane Reade will continue to operate under its brand name after the purchase. To date, Duane Reade has opened or converted 30 stores to the new format, and plans to open or remodel 30 more stores in 2010. Duane Reade had unaudited net sales of $1.8 billion for the 12-month period ending Dec. 26, 2009.