CVS Health Acquires Target Pharmacy Business

CVS Health will acquire and Target Corporation pharmacy and clinic business for approximately $1.9 billion, the two companies announced in a press release.

Through this agreement, CVS Health will acquire more than 1,660 pharmacies across 47 states and operate them through store-within-a-store format, branded as CVS/Pharmacy.

In addition, a CVS/Pharmacy will be included in all new Target stores that offer pharmacy services.

Target’s nearly 80 clinic locations will be rebranded as MinuteClinic, and CVS Health will open up 20 new clinics in Target stores within three years of the close of the transaction.

The new clinics will be part of the CVS/MinuteClinic plan to operate 1,500 clinics by 2017.  In addition, CVS Health and Target plan to develop five to 10 small, flexible format stores over a two-year period following the close of the deal, which will each be branded as TargetExpress and include a CVS/Pharmacy.

The acquisition enables CVS Health to reach more patients, adding a new retail channel for its offerings, and expanding convenient options for consumers.  The acquisition will also strengthen Target’s focus on wellness as a signature category.

“This strategic relationship with Target supports the highly complementary customer base, brand and culture we share,” said Larry Merlo, CVS Health president and CEO.  “When we introduced the new name for our company, CVS Health, we began a new era of growth with a broader health care focus and an appreciation of the rise of health care consumerism with consumer choice and accountability growing.  This relationship with Target will provide consumers with expanded options and access to our unique health care services that lead to better health outcomes and lower overall health care costs.”

“At Target, we’ve talked a lot about the evolving preferences of our guests and this partnership demonstrates that we’re committed to putting them at the forefront of everything we do,” said Brian Cornell, Target Chairman and CEO. “By partnering with CVS Health, we will offer our guests industry leading health care services, and at the same time, sharpen our focus on elevating the way we deliver wellness products and experiences to our guests.”

Following Target and CVS’s, CVS Health, Cornell sat down to chat with A Bullseye View, target’s corporate blog. You can read that Q&A by clicking here.

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