CVS Health has completed the acquisition of Target's pharmacy and clinic businesses for approximately $1.9 billion. With the transaction finalized, CVS Health has added 1,672 pharmacies across 47 states under its umbrella and will operate them as a branded store-within-a-store CVS/pharmacy format. In addition, a CVS/pharmacy will be included in all new Target stores that offer pharmacy services.
Seventy-nine Target clinic locations will also be rebranded as MinuteClinic, and CVS Health will open up to 20 new clinics in Target stores within three years of the close of the transaction.
In tandem with the acquisition, CVS Health said it plans to leverage its integrated business model and scale to drive incremental sales volume and operating profit while providing convenience and cost savings to consumers and payors.
"We look forward to helping Target guests on their path to better health through CVS Health's leading clinical programs, such as maintenance choice, pharmacy advisor and specialty connect," said Larry Merlo, president and CEO of Woonsocket, R.I.-based CVS Health.
Declaring the milestone deal "an important step in driving Target's strategic priorities forward while giving our guests easy access to industry-leading health care services," Brian Cornell, Target Corp. chairman and CEO, said the transition of its pharmacy business will help the Minneapolis-based retailer "further accelerate our commitment to wellness as a signature category, helping guests and team members in their efforts to eat better, be more active and find natural and clean label products."
The Target pharmacies and clinics will be transitioned to the CVS Health banners and systems within six to eight months.