Rite Aid to buy pharmacy benefit manager

U.S. drugstore retailer Rite Aid has agreed to purchase EnvisionRx, a pharmacy benefit management firm, for US$2 billion.

The company will pay private equity firm TPG about US$1.8 billion in cash and US$200 million in Rite Aid stock for EnvisionRx.

EnvisionRx is projected to have revenue of about US$5 billion this year.

“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 CEO John Standley.

“Combining our comprehensive suite of pharmacy benefit management services with Rite Aid’s established retail healthcare platform is a natural fit that is increasingly preferred by plan sponsors,” explains EnvisionRx CEO Frank Sheehy.

The transaction is expected to close by September 2015, subject to regulatory approvals and other customary closing conditions.

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