EnvisionRx Acquisition Centered Around Growth
In February, Rite Aid announced the acquisition of EnvisionRx, a leading, full-service pharmacy benefit management (PBM) company based in Twinsburg, Ohio, in a move that will significantly advance Rite Aid’s efforts to grow as a retail healthcare company.
A PBM is a third-party administrator that handles prescription drug coverage for plan sponsors such as employers, health plans, unions, and local, state and federal governments.
In addition to its transparent and traditional PBM offerings through the EnvisionRx and MedTrak PBMs, EnvisionRx also offers fully integrated mail-order and specialty pharmacy services through Orchard Pharmaceutical Services. And through its Envision Insurance Company, EnvisionRx also serves one of the fastest growing segments in healthcare: seniors enrolled in Medicare Part D.
“EnvisionRx’s impressive array of PBM and pharmacy-related businesses is a natural fit that complements our current healthcare platform, including our retail stores, Health Dialog, Health Alliance and RediClinic,” said Rite Aid Chairman and CEO John Standley. “Together, we will create an integrated healthcare offering across retail, specialty and mail channels, which will allow customers to enjoy a greater level of choice and access to care.”
Standley said the acquisition of EnvisionRx is centered around growth and that associates of both companies – including the 1,200 associates at EnvisionRx – will benefit from being part of a company that is better positioned to compete in the evolving healthcare marketplace.
At Rite Aid’s recent Annual Store Operations Meeting, Standley invited EnvisionRx CEO Frank Sheehy and President Dawn Sherman to the stage to tell company leaders why the acquisition is so exciting for their company and clients.
“The EnvisionRx teams are enormously excited about the opportunity this partnership brings,” said Sheehy. “With Rite Aid, a well-respected and well-recognized name in the pharmacy business, as our anchor, new doors will open to clients we haven’t reached before.”
“Being a part of Rite Aid, this larger retail and pharmacy organization gives us the ability to offer a higher level of patient care, more flexibility, more choice and more competitive financial offerings,” added Sherman.
In terms of next steps, the transaction is expected to close by September 2015, subject to regulatory approvals and other customary closing conditions. Upon closing, EnvisionRx will operate as a wholly owned subsidiary of Rite Aid.
“We look forward to welcoming EnvisionRx’s proven management team and talented associates to the Rite Aid family,” Standley said. “This is an exciting time to be part of the Rite Aid team, and I thank all of our supplier partners for their continued support and commitment to the success of our growing company.
“Without the great work we’ve done together these past few years,” Standley continued, “we would not have been able to make this acquisition. We look forward to working with the EnvisionRx team to further expand our healthcare offering and provide a higher level of care to the communities we serve.”