Rite Aid to buy EnvisionRx in $2 billion deal

Rite Aid and Envision Pharmaceutical Services (EnvisionRx) said on Wednesday that they have reached a final agreement in which Rite Aid will purchase EnvisionRX, a transaction valued at approximately $2 billion.

Each company's board unanimously approved the agreement, under which Rite Aid will pay approximately $1.8 billion in cash and the remaining $200 million in Rite Aid Stock. The transaction is expected to close by September. After the closing, EnvisionRx will function as a completely owned subsidiary of Rite Aid.

EnvisionRx is a leading independent pharmacy benefit manager (PBM) that provides transparent and traditional PBM options and pharmacy-related services to customers nationwide. EnvisionRx is expecting to bring in approximately $5 billion in revenue for the 2015 calendar 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,” Rite Aid Chairman and CEO John Standley said. “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.”