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CVS buys up Target pharma sites in $1.9B purchase

CVS Health is buying mega retailer Target’s pharmacy and clinic business units for $1.9 billion, which gives CVS Health an additional 1,660 pharmacies across 47 states.

Photo Source: CVS

June 16, 2015

CVS Health is buying mega retailer Target’s pharmacy and clinic business units for $1.9 billion which gives CVS Health an additional 1,660 pharmacies across 47 states.

The former Target pharmacies will be rebranded as ‘MinuteClinic,’ and CVS Health will launch up to 20 new clinics in Target stores in the next three year, according to an announcement Monday. The acquisition strategy includes CVS Health and Target developing five to 10 small flexible format stores in the next two years which will be branded as TargetExpress and include a CVS/pharmacy. The new 20 clinics in Targets is part of CVS/minuteclinic’s plan to have 1,500 clinics up and running by 2017.

“This strategic relationship with Target supports the highly complementary customer base, brand and culture we share,” stated Larry Merlo, CVS Health president and CEO, in a press release on the acquisition. “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 CVS Health expansion strategy is part of a quest to build new markets in Denver, Seattle, Portland and Salt Lake City. For Target the benefit, states the release, is greater long-term traffic and sales growth and the ability to strengthen focus on wellness.

“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.”   

The release states that while the transaction closing date is not yet determined the goal is to complete the deal by year’s end.