Rite Aid gets OK from bankruptcy court to sell subsidiary
MedImpact Healthcare Systems to acquire Elixir
Rite Aid has announced it has received approval from the U.S. Bankruptcy Court for the District of New Jersey to sell its Elixir Solutions business to MedImpact Healthcare Systems Inc. an independent pharmacy benefit solutions company.
When Rite Aid announced almost three months ago that it was filing for Chapter 11 bankruptcy, the company said it had entered into an agreement with MedImpact Healthcare Systems to acquire Elixir.
Elixir, a pharmacy benefits and services company, is a whollyowned subsidiary of Rite Aid.
Rite Aid acquired Envision Pharmaceutical Services for $2 billion in 2015. In 2020, the company rebranded Envision Pharmaceutical
Services to Elixir.
“We are pleased to receive this key approval toward the sale of our Elixir business to MedImpact,” Jeffrey S. Stein, Rite Aid’s CEO and chief restructuring officer, said in a news release. “We are confident the transaction with MedImpact maximizes the value of the business and best positions Elixir to support clients, members and customers long into the future. We are grateful to the Elixir team for their hard work and dedication throughout this process.”
The transaction is subject to certain customary closing conditions and is expected to close in the first quarter of 2024. Until closing, Elixir remains part of Rite Aid and will continue operating as normal.
Philadelphia-based Rite Aid previously announced that Elixir Insurance was not included in Rite Aid’s Chapter 11 process or the proposed transaction with MedImpact, and it is continuing to operate and serve members as usual.
Since Rite Aid first announced it had filed for bankruptcy, it has announced that it would be closing more than 300 stores.
“We are continuing to make progress with our court-supervised process and are moving forward with our Rite Aid 2.0 Plan. We remain focused on providing leading healthcare products and services to the customers that we serve every day,” Stein said.