WOONSOCKET, R.I., and MINNEAPOLIS — CVS Health has completed its $1.9 billion acquisition of Target Corp.’s pharmacy and retail health clinic business.
The companies said Wednesday that Target’s 1,672 pharmacies in 47 states will be branded as CVS/pharmacy and operated under a store-within-a-store format. A CVS/pharmacy will be in all new Target stores that offer pharmacy services.
Also, 79 Target clinic locations will be rebranded as MinuteClinic, CVS Health’s retail clinic banner. Plans call for up to 20 new MinuteClinics to be opened in Target stores within three years.
The Target pharmacies and clinics are expected be transitioned to the CVS Health banners and systems within six to eight months.
With the addition of Target’s pharmacies, CVS Health is currently the nation’s largest retail pharmacy operator, with more than 9,500 retail pharmacy locations overall. The company already is the biggest operator of retail clinics and now will have over 1,100 walk-in medical clinics with the addition of the Target clinic locations.
“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 chief executive officer Larry Merlo said in a statement.
“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,” he said.
CVS Health and Target announced the deal in mid-June. At the time, the companies also said they plan to develop five to 10 small-format stores — branded as TargetExpress and including a CVS/pharmacy — over two years after the deal closes. No update was given on those plans Wednesday when the companies reported the completion of the acquisition deal.
“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 chairman and CEO Brian Cornell stated. “With the transition now under way, 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.”