Rite Aid To Buy TPG's EnvisionRx In Deal Valued At About $2 Billion

Rite Aid Corp. said Wednesday it has agreed to buy EnvisionRx, a pharmacy benefit manager that is a portfolio company of private-equity firm TPG, for about $2 billion. Rite Aid will pay $1.8 billion in cash and another $200 million in stock, the company said in a statement. EnvisionRx is expected to have 2015 revenue of about $4 billion and EBITDA of $150 million to $160 million. The deal "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 Chief Executive John Standley said in the statement. The deal is expected to close by September, and to boost Rite Aid's EPS in the first full year after closing. Shares were not yet active in premarket trade, but have gained 37.3% in the last three months, while the S&P 500 has gained 1.4%.