CVS Health and Target Sign $1.9 Billion Deal, CVS Acquires Target’s Pharmacies
Monday, June 15, 2015
CVS Health Corporation and Target Corporation have announced that they have entered into a definitive agreement for CVS Health to acquire Target's pharmacy and clinic businesses for approximately $1.9 billion.
"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."
The Agreement
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTCVS Health will acquire Target's 1,660 pharmacies across 47 states and operate them through a store-within-a-store format, branded as a CVS pharmacy. In addition, a CVS pharmacy will be included in all new Target stores that offer pharmacy services.
"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."
Rebranding & Growth In The Future
Target's nearly 80 clinic locations will 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.
The new clinics will be part of CVS and MinuteClinic's 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 deal close, which will each be branded as TargetExpress and include a CVS pharmacy.
This strategic relationship brings together two leading retailers with complementary strengths, brands and cultures to enhance the health care experience for Target guests while expanding CVS Health's retail presence in new markets, such as Seattle, Denver, Portland and Salt Lake City.
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