M&A Deal Summary

Rite Aid Acquires PCS Health Systems

On November 18, 1998, Rite Aid acquired healthcare services company PCS Health Systems from Lilly for 1.5B USD

Acquisition Highlights
  • This is Rite Aid’s 1st transaction in the Healthcare Services sector.
  • This is Rite Aid’s 3rd largest (disclosed) transaction.
  • This is Rite Aid’s 7th transaction in the United States.
  • This is Rite Aid’s 1st transaction in Arizona.
Investment Fate
  • PCS Health Systems was divested to a consortium of buyers in 2000 for 1.0B USD.

M&A Deal Summary

Date 1998-11-18
Target PCS Health Systems
Sector Healthcare Services
Buyer(s) Rite Aid
Sellers(s) Lilly
Deal Type Divestiture
Deal Value 1.5B USD

Target

PCS Health Systems

Scottsdale, Arizona, United States
PCS Health Systems, Inc. is a pharmacy benefit manager, providing drug and health management solutions for health plans and patients. As America's premier pharmaceutical care system, PCS works to encourage proper drug use and helps to lower the cost of drugs for its clients. PCS manages and monitors approximately 300 million individual prescriptions each year representing $10 billion in drug expenditures.

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Buyer(S) 1

Buyer

Rite Aid

Philadelphia, Pennsylvania, United States

Category Company
Founded 1962
Sector Retail
Employees47,000
Revenue 24.1B USD (2023)
DESCRIPTION

Rite Aid is a drugstore chain. Rite Aid operates through two segments, Retail Pharmacy and Pharmacy Services. Rite Aid was founded in 1962 and is based in Philadelphia, Pennsylvania.


DEAL STATS #
Overall 7 of 12
Sector (Healthcare Services) 1 of 3
Type (Divestiture) 1 of 1
State (Arizona) 1 of 1
Country (United States) 7 of 12
Year (1998) 1 of 1
Size (of disclosed) 3 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1997-07-21 Harco

Tuscaloosa, Alabama, United States

Harco, Inc. is a retail drug store company.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2000-07-12 PCS Health Systems

Scottsdale, Arizona, United States

PCS Health Systems, Inc. is a pharmacy benefit manager, providing drug and health management solutions for health plans and patients. As America's premier pharmaceutical care system, PCS works to encourage proper drug use and helps to lower the cost of drugs for its clients. PCS manages and monitors approximately 300 million individual prescriptions each year representing $10 billion in drug expenditures.

Sell $1.0B

Seller(S) 1

SELLER

Lilly

Indianapolis, Indiana, United States

Category Company
Founded 1876
Sector Life Science
Employees43,000
Revenue 34.1B USD (2023)
DESCRIPTION
Entrance to Eli Lilly's campus in Indianapolis, Indiana.
Entrance to Eli Lilly's campus in Indianapolis, Indiana.

Lilly discovers, develops, manufactures, and markets products in two business segments—human pharmaceutical products and animal health products. The mission of its human pharmaceutical business is to make medicines that help people live longer, healthier, more active lives. Most of the products Eli Lilly sells were discovered or developed by its own scientists, and the Company's success depends to a great extent on its ability to continue to discover, develop, and bring to market innovative new medicines. Eli Lilly's animal health business, operating through its Elanco division, develops, manufactures, and markets products for both food animals and companion animals. Eli Lilly manufactures and distributes its products through facilities in the US, Puerto Rico, and 11 other countries. Lilly was founded in 1876 and is based in Indianapolis, Indiana.


DEAL STATS #
Overall 4 of 9
Sector (Healthcare Services) 1 of 1
Type (Divestiture) 3 of 8
State (Arizona) 1 of 1
Country (United States) 4 of 9
Year (1998) 1 of 1
Size (of disclosed) 1 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1995-01-06 Pacific Biotech

San Diego, California, United States

Pacific Biotech, Inc., is a developer and marketer of rapid diagnostic tests for the detection of pregnancy and infectious diseases such as strep throat, vaginal infections and mononucleosis.

Sell $4M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2000-04-06 Kinetra

Nashville, Tennessee, United States

Kinetra LLC is a provider of clinical document distribution solutions and administrative transactions to IDNs, large hospitals and payors.

Sell -