UPDATE 1-Walgreen buys Minnesota's Snyder's Drug Stores

* Some stores will move patients to nearby Walgreens

* Sets educational program for chronic conditions

CHICAGO, Jan 13 (Reuters) - Walgreen Co WAG.N said on Wednesday that it plans to buy 25 Snyder's Drug Stores in Minnesota for an undisclosed sum, as it continues to expand its reach as the largest U.S. drugstore chain.

The company said it expects to keep operating some of the acquired locations and staff most of them with Snyder’s employees. Walgreen plans to buy the prescription files from other locations and transfer them to nearby Walgreens pharmacies.

Before the acquisition, Walgreen had 132 stores in Minnesota. It has operated in the state for more than 80 years.

Separately, Walgreen said it has started an educational program for people with chronic conditions. The first phase of the program, called Walgreens Optimal Wellness, is for patients with type 2 diabetes. For now, it is only being offered in some stores in Albuquerque, Indianapolis, Oklahoma City and Phoenix.

Shares of Walgreen, which is set to hold its annual meeting in Chicago on Wednesday afternoon, rose 2 cents to $36.76 in morning trade. (Reporting by Jessica Wohl, editing by Gerald E. McCormick)