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CAMP HILL, Pa. — Continuing to broaden its health care offerings, Rite Aid Corp. has agreed to acquire pharmacy benefits manager EnvisionRx from private investment firm TPG for around $2 billion, including an expected $275 million future tax benefit.
Continuing to broaden its health care offerings, Rite Aid Corp. has agreed to acquire pharmacy benefits manager EnvisionRx from private investment firm TPG for around $2 billion, including an expected $275 million future tax benefit.
Under the terms of the deal, which has been unanimously approved by the boards of both companies, Rite Aid will pay about $1.8 billion in cash and $200 million in company stock, or some 27.9 million shares.
EnvisionRx is a national, full-service PBM with projected 2015 revenues of $5 billion and projected EBITDA (earnings before interest, taxes, depreciation and amortization) of $150 million to $160 million. The company provides both transparent and traditional PBM options through its EnvisionRx and MedTrak PBMs, respectively, as well as pharmacy-related services to clients nationwide. EnvisionRx 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 offering.
"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," said 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. We also look forward to welcoming EnvisionRx’s proven management team and talented associates to Rite Aid."
"Combining our comprehensive suite of pharmacy benefit management services with Rite Aid’s established retail health care platform is a natural fit that is increasingly preferred by plan sponsors," said EnvisionRx CEO Frank Sheehy.
"EnvisionRx’s innovative business model has always set it apart from other PBMs, and as part of a recognized pharmacy leader, will now be well positioned for further success," said Sharad Mansukani, chairman of EnvisionRx and senior advisor for TPG. "TPG believes EnvisionRx has built a best-in-class company with tremendous potential, and as a groundbreaking PBM, it has a great future as part of Rite Aid."
