CVS Health is to acquire retailer Target’s pharmacy and clinic business for $1.9bn.
As part of the deal, the company will acquire Target’s 1,660 pharmacies in 47 states, which will be rebranded as CVS.
The move helps CVS Health reach more patients by expanding its reach into new markets including Denver, Portland and Seattle. It also helps Target strengthen its focus on wellness as a key category for the retailer.
Larry Merlo, CVS Health president and chief executive, said: “This strategic relationship with Target supports the highly complementary customer base, brand and culture we share. 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.”
In addition to the pharmacies, Target’s 80 clinic locations will be renamed ‘MinuteClinic.’ CVS Health plans to open up to 20 new clinics in Target stores following the transaction.
The new clinics are part of CVS’s plans to operate 1,500 clinics by 2017.
As part of the agreement, CVS Health said it is committed to offering 14,000 in-store Target healthcare employees comparable positions.