Cramer: Rite Aid Continues to Impress, Shares Will Hit New Highs - TheStreet

NEW YORK (TheStreet) -- Shares of Rite Aid (RAD) - Get Report are are surging about 10% Wednesday after the company announced the acquisition of Envison Pharmaceuticals, a pharmacy benefits manager, for about $2 billion in cash and stock. 

The company is "mimicking" CVS Health (CVS) - Get Report , TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment. 

Rite Aid now joins CVS Health and Walgreens Boots Alliance (WBA) - Get Report to create the "Big Three" in the pharmacy space, he also said. 

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Rite-Aid RAD data by YCharts

Following the acquisition announcement, Cramer says Rite Aid is no longer a turnaround story. Instead, it's now a growth story. 

Perhaps the company should consider taking tobacco out of its stores, like CVS Health did as the latter is transitioning into becoming more of a health care company, Cramer said. 

Shares of Rite Aid are likely to take out their previous 52-week high of $8.62, as management continues delivering solid results, Cramer added. 

-- Written by Bret Kenwell

Follow @BretKenwell

At the time of publication, Cramer's Action Alerts PLUS was long WBA.