Rite Aid to buy pharmacy benefit manager EnvisionRx for $2 billion-Reuters

(Reuters) – Drugstore operator Rite Aid Corp (RAD.N) said it would buy pharmacy benefit manager EnvisionRx for about $2 billion, to enter the business of administering drug benefits for employers.

The third-largest U.S. drug-store chain said it would pay about $1.8 billion in cash and $200 million in stock.

Rite Aid’s shares rose 3 percent to $7.88 in premarket trading.

Privately held EnvisionRx is a unit of Envision Pharmaceutical Holdings LLC, which is owned by private equity firm TPG.

Pharmacy benefit managers administer drug benefits for employers and health plans and run large mail order pharmacies.
EnvisionRx manages pharmacy benefits for over 13 million individuals.

Photo courtesy of Reuters.