CVS to Acquire Target's Pharmacy Business
Posted on June 15, 2015
CVS Health and Target have signed a $1.9 billion deal that will result in CVS taking over all of Target's pharmacies. CVS says it will acquire over 1,660 pharmacies from Target across 47 states and operate them through a store-within-a-store format, branded as CVS/pharmacy.
CVS will also acquire Target's 80 clinic locations and rebrand them as MinuteClinic. CVS and Target also plan to launch five to ten smaller stores over the next two years called TargetExpress. These smaller format stores will also contain a pharmacy operated by CVS.
Brian Cornell, Target Chairman and CEO, says in a statement, "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. 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 CVS Health press release says the timing of the closing of the transaction is uncertain. It will require regulatory clearance. CVS says the in-store changes will be rolled over a period of several months following the closing.
CVS says in a statement that "CVS Health and Target work to ensure the smoothest possible transition for all pharmacy and clinic patients." The switch from Target to CVS could surprise some consumers who gets their drugs from Target, especially if it results in their drug prices climbing.