CVS Health completes acquisition of Target's pharmacy and clinic businesses

Woonsocket, R.I.-based CVS Health Corp. and Target Corp., Minneapolis, announced that CVS Health completed the acquisition of Target's pharmacy and clinic businesses for approximately $1.9 billion. CVS Health acquired Target's 1,672 pharmacies across 47 states and will operate them through a 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. Seventy-nine Target 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.

"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, CVS Health. "In addition, with the Target acquisition, we will leverage our unique integrated business model and our scale to drive incremental sales volume and operating profit for the enterprise while providing convenience and cost savings to consumers and payors."

The Target pharmacies and clinics will be transitioned to the CVS Health banners and systems within six to eight months, the retailers said.

"Today's milestone in our relationship with CVS Health is an important step in driving Target's strategic priorities forward while giving our guests easy access to industry-leading health care services,” said Brian Cornell, chairman and CEO, Target. “With the transition now underway, Target can 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.”