PHILADELPHIA--(BUSINESS WIRE)--Rite Aid Corporation (OTC: RADCQ) (“Rite Aid” or the “Company”) today announced that the U.S. Bankruptcy Court for the District of New Jersey has approved the sale of the Company’s Elixir Solutions Business to MedImpact Healthcare Systems, Inc. (“MedImpact”), an independent pharmacy benefit solutions company.
“We are pleased to receive this key approval toward the sale of our Elixir business to MedImpact,” said Jeffrey S. Stein, Rite Aid’s CEO and Chief Restructuring Officer. “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.”
Mr. Stein continued, “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.”
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.
Additional Information
Additional information regarding the Company’s court-supervised process is available at www.riteaidrestructuring.com. Court filings and other information related to the proceedings are available on a separate website administrated by the Company’s claims agent, Kroll, at https://restructuring.ra.kroll.com/RiteAid; by calling Kroll toll-free at (844) 274-2766, or (646) 440-4878 for calls originating outside of the U.S. or Canada; or by emailing Kroll at RiteAidInfo@ra.kroll.com.
Kirkland & Ellis LLP is serving as legal advisor, Guggenheim Securities is serving as investment banker and Alvarez & Marsal is serving as transformation officer and financial advisor to the Company.
About Rite Aid Corporation
Rite Aid is a full-service pharmacy committed to improving health outcomes. Rite Aid is defining the modern pharmacy by meeting customer needs with a wide range of solutions that offer convenience, including retail and delivery pharmacy, as well as services offered through our wholly owned subsidiaries, Elixir, Bartell Drugs and Health Dialog. Elixir, Rite Aid’s pharmacy benefits and services company, consists of accredited mail and specialty pharmacies, prescription discount programs and an industry leading adjudication platform to offer superior member experience and cost savings. Health Dialog provides healthcare coaching and disease management services via live online and phone health services. Regional chain Bartell Drugs has supported the health and wellness needs in the Seattle area for more than 130 years. Rite Aid employs nearly 6,000 pharmacists and operates more than 1,900 retail pharmacy locations across 17 states. For more information, visit www.riteaid.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes statements that may constitute “forward-looking statements,” including expectations regarding the Company’s business plan and initiatives, the Company’s ability to continue to operate its business as currently contemplated, the effect of the Company’s Chapter 11 reorganization, the Company’s ability to close the sale of the Elixir business, and other statements regarding the Company’s plans and strategy. When used in this document, the words “will,” “continue,” and similar expressions are generally intended to identify forward-looking statements. These statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. A number of important factors could cause actual results of the Company and its subsidiaries to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, risks and uncertainties outlined in the risk factors detailed in Item 1A. “Risk Factors,” of the Company’s Annual Report on Form 10-K for the fiscal year ended March 4, 2023 (as filed with the Securities and Exchange Commission (“SEC”) on May 1, 2023) and other risk factors identified from time to time in the Company’s filings with the SEC. Readers should carefully review these risk factors, and should not place undue reliance on the Company’s forward-looking statements. The Company undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
