MedImpact to Buy Rite Aid Drug Benefits Unit as Auction Ends (1)

Bankrupt pharmacy chain Rite Aid Corp. canceled an auction for its Elixir division and agreed to sell the insurance-related business to MedImpact Healthcare Systems for $575 million after no higher bid came in, court papers show.

The deal to sell Elixir to MedImpact was put together before Rite Aid filed bankruptcy. The company used the $575 million offer as the floor for a potential auction, which is a common practice in Chapter 11 cases.

MedImpact tried to finance its bid through the broadly syndicated loan market, but the process sputtered and Rite Aid instead pivoted to a self-financing structure.

Shedding ...