WOONSOCKET – CVS Health Corp. will pay $1.9 billion to buy Target Corp.’s pharmacies and clinics, expanding its reach by adding stores bearing its name inside the second-largest discount retail chain in the U.S.
CVS Health will acquire Target’s more than 1,660 pharmacies across 47 states and operate them through a store-within-a-store format, branded as CVS/pharmacy, the companies said in a statement. All new Target stores with pharmacy services will include a CVS/pharmacy, they said.
CVS is seeking to reach more patients with a new retail outlet for its offerings. The deal brings the company to new markets, including Seattle, Denver and Portland, and is expected to help it reach a goal of operating 1,500 clinics by 2017. Target expects to gain more traffic and sales and build its reputation for wellness products.
Target has almost 80 clinics that will be rebranded as MinuteClinic, and CVS will open as many as 20 new clinics in Target stories within three years of completion of the deal, the companies said.
