(Bloomberg) — CVS Health Corp. (NYSE:CVS) 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 today in a statement. All new Target (NYSE:TGT) 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 will help it reach a goal of operating 1,500 clinics by 2017, according to the statement. Target expects to gain more traffic and sales and build its reputation for wellness products.
"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," Larry Merlo, CVS president and chief executive officer, said in the statement.
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