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CAMP HILL, Pa. — Rite Aid Corp. has taken another decisive step in its drive to expand its footprint in health care, agreeing to acquire Envision Pharmaceutical Services, a full-service pharmacy benefits management company, in a deal valued at about $2 billion.
Rite Aid Corp. has taken another decisive step in its drive to expand its footprint in health care, agreeing to acquire Envision Pharmaceutical Services, a full-service pharmacy benefits management company, in a deal valued at about $2 billion.
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EnvisionRx provides both transparent and traditional PBM options through its EnvisionRx and MedTrak PBMs, respectively, as well as pharmacy-related services to clients across the United States.
The company also offers fully integrated mail-order and specialty pharmacy services through Orchard Pharmaceutical Services; access to the nation’s largest cash pay infertility discount drug program via Design Rx; an innovative claims adjudication software platform in Laker Software; and a national Medicare Part D prescription drug plan through Envision Insurance Co.’s EnvisionRx Plus product offering.
The company, which is now part of private equity firm TPG, has projected 2015 calendar-year revenues of $5 billion and EBITDA (earnings before interest, taxes, depreciation and amortization) in the range of $150 million to $160 million.
"The acquisition of EnvisionRx meaningfully expands our health and wellness offerings, enhancing our ability to provide a higher level of care to the patients and communities we serve," says Rite Aid chairman and chief executive officer John Standley. "With the addition of EnvisionRx, we will create a compelling pharmacy offering across retail, specialty and mail-order channels, enabling us to deliver cost-effective solutions to employers and health plans while driving growth and creating long-term value for our shareholders."
EnvisionRx CEO Frank Sheehy notes, "Combining our comprehensive suite of pharmacy benefits management services with Rite Aid’s established retail health care platform is a natural fit that is increasingly preferred by plan sponsors. Together, we see tremendous opportunities to provide new and existing customers with an integrated health care offering that will build upon the company’s strong existing platform."
The transaction is expected to be accretive to Rite Aid’s earnings per share in the first full year following the closing of the transaction, which should be by September.
Once the deal is finalized, EnvisionRx will operate as a wholly owned subsidiary of Rite Aid led by Sheehy and current management. EnvisionRx’s headquarters will remain in Twinsburg, Ohio.
