Rite Aid Corp. (RAD) announced that it would acquire private equity-backed Envision Pharmaceutical Holdings Inc. for $2 billion, following rival CVS Health Corp. into the pharmacy-benefit manager business. Terms of the deal call for Camp Hill, Pa.-based Rite Aid to pay $1.8 billion in cash and $200 million in stock for Envision, which is owned by TPG Capital LP. Rite Aid will issue about 27.9 million of its shares to complete the deal. Twinsburg, Ohio-based Envision provides pharmacy benefit management services including claims processing, formulary management, mail-order delivery, benefit-design consulting and related services. The company, according to Rite Aid, should generate 2015 Ebitda of between $150 million and $160 million on sales of $5 billion. Rite Aid, which operates 4,569 retail locations in 31 states and the District of Columbia, said the purchase would open up a new stream of revenue for the company. The acquisition of EnvisionRx meaningfully expands our health and wellness offerings, enhancing our ability to provide a higher level of care to the patients and communities we serve, company chairman and CEO John Standley said in a statement. “With the addition of EnvisionRx, we will create a compelling pharmacy offering across retail, specialty and mail-order channels, enabling us to deliver cost-effective solutions to employers and health plans while driving growth and creating long-term value for our shareholders.” The company is following in the footsteps of CVS, which bought Caremark Rx Inc. in 2007 and ranks as one of the largest pharmacy-benefit managers in the U.S. At CVS, the benefits management business enjoys higher margins than the retail unit.