Rite Aid has completed the acquisition of Envision Pharmaceutical Services from the global private investment firm TPG and other shareholders.
The transaction was valued at approximately $2 billion, with around $1.8 billion in cash and 27.9 million Rite Aid shares.
“The completion of this acquisition is an important step in our strategy to expand Rite Aid’s retail health care platform and enhance our health and wellness offerings,” Rite Aid Chairman and CEO John Standley said. “EnvisionRx’s talented management team and valued associates are a tremendous addition to our Rite Aid family. The combination of EnvisionRx’s broad suite of PBM and pharmacy-related businesses with Rite Aid’s retail platform will provide our customers and patients with an integrated offering across retail, specialty and mail-order channels.”
EnvisionRx will function as a wholly owned subsidiary of Rite Aid run by EnsionRx CEO Frank Sheehy and current management. EnvisionRx’s headquarters will remain in Twinsburg, Ohio.
“As part of Rite Aid, we are well-positioned to deliver a truly integrated health care offering which will provide tremendous benefits to both plan sponsors and patients,” Sheehy said. “Our work is already well underway and we look forward to accelerating our efforts now that the transaction is complete.”
The transaction was announced in February and, is anticipated to boost Rite Aid’s earnings per share in the fiscal year 2017.