CVS Health closes deal on Target pharmacy acquisition

CVS Health finalized its purchase of Target's pharmacy and clinic business Thursday.

The $1.9 billion deal will give CVS access to the retail company's more than 1,600 pharmacies through 47 states, which will be rebranded as CVS/pharmacy. Additionally, 79 of Target's clinics will be rebranded as MinuteClinic. The transition will take place over the next six to eight months.

“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," Target CEO and Chairman Brian Cornell said. "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."

As part of the agreement, CVS also plans to open around 20 new clinics in Target stores over a period of three years.

“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,” CVS Health President and CEO Larry Merlo said. “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.”