Envision Pharmaceutical Services taken over by pharmacy retailer Rite Aid
Friday, February 13, 2015
Envision Pharmaceutical Services, founded and once based in El Dorado Hills, has been sold to giant pharmacy retailer Rite Aid.
The company was first sold in July 2013 to global private investment firm TPG.
EnvisionRX still has about 200 employees in El Dorado Hills and about 1,000 nationwide. As it becomes a wholly owned subsidiary of Rite Aid, Envision will keep its Twinsburg, Ohio headquarters. Management, led by current CEO Frank Sheehy, is expected to remain.
Founder Kevin Nagle, who was CEO when the company was sold in 2013, is currently vice chairman of the board.
Founded in 2001, Envision, also known as EnvisionRX, manages prescription drug benefits for more than 10 million members.
The acquisition is worth about $2 billion, including a future tax benefit of $275 million, according to a news release from Rite Aid.
Camp Hill, Pa.-based Rite Aid Corp. (NYSE: RAD) will pay about $1.8 billion in cash and $200 million in stock, or about 27.9 million shares.
Envision's projected revenue for 2015 is about $5 billion.
In a news release, EnvisionRX CEO Frank Sheehy said the acquisition by Rite Aid was a natural fit. "Combining our comprehensive suite of pharmacy benefit management services with Rite Aid's established retail health care platform is a natural fit that is increasingly preferred by plan sponsors."
Rite Aid CEO and chairman John Standley said the acquisition expands its offerings, "enhancing our ability to provide a higher level of care to the patients and communities we serve."
Rite Aid will be able to offer prescriptions via retail, specialty and mail order, making it less expensive for employers and health plans.
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