CVS Acquires all Target Pharmacies, Clinics
WOONSOCKET, R.I., June 15 (UPI) — CVS Health Corporation on Monday said it is buying all of Target Corporation’s pharmacies and clinics for $1.9 billion, a move that will put the CVS name inside more than 1,660 Targets across the country.
Under the deal, all pharmacies at Target retail stores will be rebranded under the CVS name in a “store-within-a-store format,” CVS said. Any new Target stores with pharmacy services will also include the CVS rebranding.
Additionally, the clinics inside 80 Target locations will be turned into a CVS MinuteClinic. Any new clinics built will help the pharmacy achieve its plan to operate 1,700 clinics by 2017.
“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.”
Target Chairman and CEO Brian Cornell said the move was to accommodate the “evolving preferences of our guests.”
“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,” he said.
After news of the announcement, CVS Health’s share prices closed up .4 percent and Target closed up 1.27 percent.
