WOONSOCKET – CVS Health Corp. has entered into a definitive agreement to acquire EntrustRx, a subsidiary of Fred’s Inc., the company confirmed to PBN Tuesday.
CVS Health said the acquisition will allow it to provide mail order services to additional patients in the United States. The acquisition will fall under CVS Specialty.
The acquisition includes EntrustRx’s three specialty mail order facilities located in Columbus, Miss., Spring Hill, Tenn., and Memphis, Tenn.
Fred’s Inc. said it expects the deal to be worth $40 million, plus an amount equal to the value inventory of EntrustRx.
Both companies expect the deal to close at the end of May.
“One of Fred’s top priorities for 2018 has been to monetize non-core assets and we are pleased to have reached an agreement for the sale of EntrustRx,” said Fred’s Interim CEO Joe Anto in a statement. “The cash proceeds will allow us to pay down a significant portion of our debt and also be used for general corporate purposes.”
CVS Health said that following the completion of the deal, the transition of patients to CVS Specialty will be “seamless.”
Chris Bergenheim is the PBN web editor.