CVS Health Corp. and Target Corp. said on Monday that they have reached an agreement for CVS Health to purchase Target’s pharmacies and clinics for approximately $1.9 billion.
Once the deal is finalized, Target’s more than 1,660 pharmacies across 47 states will be rebranded as CVS/pharmacies, operating within Target stores; Target's approximately 80 clinics will be rebranded as MinuteClinics.
“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,” Brian Cornell, Target's chairman and CEO, said. “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.”
Clinical locations will be counted as part of CVS' plan to open 1,500 clinics by 2017. Target customers will have access to CVS services through the pharmacies, which also will provide low-cost generic medication plans.
We operate in a rapidly changing health care and regulatory environment,” CVS Health President and CEO Larry Merlo said. “This requires companies like CVS Health to continually innovate, providing additional points of access, lowering costs and improving quality for both consumers and payers.”
This acquisition will likely act as a catalyst for future development between Target and CVS, the announcement said.