CVS Health to Acquire Target Pharmacy

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Drug store chain CVS Health (CVS) will acquire big-box retailer Target’s (TGT) pharmacy and clinic business for $1.9 billion, the companies said Monday.

More than 1,660 Target pharmacies in 47 states will be rebranded as CVS/pharmacy. Target’s clinics, nearly 80 in total, will be renamed MinuteClinic.

The retailers are getting cozier on another front, too. Target will seek five to 10 locations for new small-format Target Express stores that would also have a CVS pharmacy inside.

“This long-term strategic relationship will certainly benefit the patients, the employees and the shareholders of both companies,” CVS Health CEO Larry Merlo said in a conference call.

CVS will offer comparable positions to Target’s 14,000 pharmacy and clinic workers. Target appeared to leave the door open for cuts at the corporate level, saying it will “further evaluate the business impact and related support needs at its headquarters locations.”

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Source: USA Today | Nathan Bomey