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Rite Aid completes purchase of pharmacy benefit manager


CAMP HILL, Pa. — Rite Aid announced on Wednesday that it has completed its previously announced acquisition of Envision Pharmaceutical Services from global private investment firm TPG and other shareholders. The transaction is valued at approximately $2 billion, including approximately $1.8 billion in cash and approximately 27.9 million Rite Aid shares.

"The completion of this acquisition is an important step in our strategy to expand Rite Aid's retail healthcare platform and enhance our health and wellness offerings," stated Rite Aid chairman and CEO John Standley. "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 operate as a wholly owned subsidiary of Rite Aid led by Frank Sheehy, EnvisionRx CEO, and current management. EnvisionRx's headquarters will remain in Twinsburg, Ohio.

The transaction, which was announced in February, is expected to be accretive to Rite Aid's earnings per share in fiscal year 2017.

"As part of Rite Aid, we are well positioned to deliver a truly integrated healthcare offering which will provide tremendous benefits to both plan sponsors and patients. Our work is already well underway and we look forward to accelerating our efforts now that the transaction is complete,” stated Sheehy.

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