Rite Aid Completes Sale of Elixir Solutions to MedImpact

Rhea-AI Summary

Rite Aid (RADCQ) has completed the sale of its Elixir Solutions business to MedImpact for approximately $575 million, marking an important milestone in the company's transformation. The divestiture will better position Rite Aid for long-term success as it focuses on healthcare products and services core to its future. Rite Aid continues to make progress in its court-supervised restructuring process and implement its go-forward business plan, Rite Aid 2.0.

Positive

• Rite Aid completed the sale of Elixir Solutions business to MedImpact for approximately $575 million.
• The transaction is a significant step in Rite Aid's transformation and will strengthen its long-term financial position.
• The divestiture will better position Rite Aid for long-term success as it focuses on healthcare products and services core to its future.

Negative

• None.

Transaction Maximizes Value as Rite Aid Evolves its Portfolio and Focuses on Growth

PHILADELPHIA--(BUSINESS WIRE)-- Rite Aid Corporation (OTC: RADCQ) (“Rite Aid” or the “Company”) today announced it has completed the previously announced sale of its Elixir Solutions business (“Elixir”) to MedImpact Healthcare Systems, Inc. (“MedImpact”) for approximately $576.5 million.

“We are pleased to finalize the sale of Elixir, marking another important milestone in our transformation to strengthen our long-term financial position,” said Jeffrey S. Stein, Rite Aid’s CEO and Chief Restructuring Officer. “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.”

Rite Aid provides leading healthcare products and services to its customers every day as it continues to make progress in its court-supervised restructuring process and implement its go-forward business plan, Rite Aid 2.0.

Additional Information

Additional information related to the Elixir transaction and Rite Aid’s restructuring proceedings are available at https://restructuring.ra.kroll.com/RiteAid.

Kirkland & Ellis LLP is serving as Rite Aid’s legal counsel, Guggenheim Securities is serving as investment banker, and Alvarez & Marsal is serving as transformation officer and financial advisor.

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 Health Dialog and Bartell Drugs. 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 1,700 retail pharmacy locations across 16 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, 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 Section21E 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240131308981/en/

INVESTORS:

Byron Purcell

(717) 975-3710

investor@riteaid.com

MEDIA:

Joy Errico

(717) 975-5718

press@riteaid.com

Source: Rite Aid Corporation

FAQ

What is the ticker symbol for Rite Aid?

The ticker symbol for Rite Aid is RADCQ.

How much did Rite Aid sell its Elixir Solutions business for?

Rite Aid sold its Elixir Solutions business to MedImpact for approximately $575 million.

What is Rite Aid's go-forward business plan called?

Rite Aid's go-forward business plan is called Rite Aid 2.0.

Who is serving as Rite Aid's legal counsel for the transaction?

Kirkland & Ellis LLP is serving as Rite Aid's legal counsel for the transaction.