BUSINESS MEMO: DRUGSTORE PURCHASES

PLANO, Texas -- JCPenney Co. Inc. has announced it would buy Eckerd Corp. in a $2.59 billion cash-and-stock deal that would double the department store chain's revenues from the drugstore business.

With the acquisition of Eckerd's 1,724 stores, which had sales of more than $5 billion last year, JCPenney's Thrift Drug Inc. subsidiary will operate about 2,800 drugstores with $10 billion in annual sales.

Earnings from drugstores will account for about a third of JCPenney's total sales, if the deal wins shareholder and regulatory approval.

James E. Oesterreicher, JCPenney's chief executive officer, said JCPenney likely will put Eckerd's name on all its drugstores. A final decision will come next year, when the deal is expected to close.

In addition to paying $35 for each of 37.1 million Eckerd shares, the Plano, Texas-based JCPenney is assuming $760 million in Eckerd debt, bringing the cost of the acquisition to $3.3 billion.