Rite Aid Corporation has completed the previously announced sale of its Elixir Solutions business to MedImpact Healthcare Systems for about $576.5 million.
This is the latest addition and part of MedImpact’s ongoing reinvestment strategy, and the acquisition expands the company’s portfolio of clinical, technology, health risk management, and consumer empowerment capabilities.
MedImpact is also celebrating its 35th anniversary this year. While the company started as an independent PBM startup, it has continually invested in innovation and reinvention to offer an ecosystem of total health and technology solutions to meet clients’ needs in a complex and challenging healthcare landscape. MedImpact’s vision is to provide better care at a better cost. MedImpact helps commercial and government health plans improve member health, manage total healthcare benefits, and reduce drug costs for millions of consumers nationwide.
Kirkland & Ellis LLP serves as Rite Aid’s legal counsel, Guggenheim Securities is an investment banker, and Alvarez & Marsal is a transformation officer and financial advisor.
Through this deal, MedImpact has been advised by BDO USA P.C., DLA Piper, LLP, FTI Consulting, Inc., and UBS Investment Bank.
KEY QUOTES:
“We are pleased to finalize the sale of Elixir, marking another important milestone in our transformation to strengthen our long-term financial position. We believe this transaction is a great outcome for Rite Aid and our stakeholders, including our Elixir colleagues and the customers, clients and members they serve. Importantly, this divestiture will better position Rite Aid for long-term success as we continue to evolve our portfolio to focus on the healthcare products, services and solutions that are core to our future.”
– Jeffrey S. Stein, Rite Aid’s CEO and Chief Restructuring Officer
“The market is asking for an alternative provider that combines innovative care solutions and connective technology without sacrificing clinical capabilities, scale, and reliability. This acquisition is the next step in offering connected care solutions to make care more personal, predictive, portable, and affordable for our clients and their members.”
“MedImpact looks forward to continued investment and expansion to offer clients an ecosystem of flexible connected health solutions.”
– Fred Howe, MedImpact Chairman and Chief Executive Officer
