CVS To Buy Target’s Drug Store Business For $1.9 Billion
The deal allows CVS to expand into parts of the country where its activities have been limited. It also shows the ambitions of a company that already has big momentum. CVS is the nation's largest dispenser of prescription drugs and the biggest operator of health care clinics, The New York Times reports.
The Associated Press:
Target Selling Pharmacy, Clinic Businesses To CVS Health
Target will sell its pharmacy and clinic businesses to the drugstore chain CVS Health for about $1.9 billion in a deal that combines the resources of two retailers seeking to polish their health care reputations. (6/15)
The New York Times:
CVS To Buy 1,600 Drugstores From Target For $1.9 Billion
The voracious CVS Health is already a dominant player in nearly every corner of the health care world — it is the nation’s largest dispenser of prescription drugs, the biggest operator of health care clinics and the second-largest pharmacy-benefits manager. And with the news Monday that it had agreed to buy Target’s pharmacy and clinic businesses in a deal worth about $1.9 billion, it demonstrated that its appetite shows no signs of abating. (Thomas, Bray and Tabuchi, 6/15)
USA Today:
CVS Buys Target Pharm Biz For $1.9B
The deal comes a little less than a month after CVS entered into an agreement to acquire Omnicare, for about $12.7 billion, in a move to expand its presence in the senior care market. 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. (Bomey, 6/15)
The Washington Post:
CVS To Acquire Target’s Pharmacy Business For $1.9 Billion
CVS executives said the deal would allow them to reach a broader base of customers. They will enter metropolitan areas where they don’t currently have a strong presence, such as Seattle, Portland and Denver, and perhaps capture a different kind of shopper: While CVS’s 7,800 drugstores are often a destination for a “fill-in trip,” in which you grab two or three items, Target’s massive merchandise assortment makes it a logical destination for a bigger shopping trip. (Halzack, 6/15)
Reuters:
CVS Health To Buy Target's Pharmacy Business For $1.9B
For Target, the deal divests a business that was "modestly negative" in terms of profits. While Target will lose revenue, its sales, general and administrative costs will drop by $1 billion. Target Chief Executive Brian Cornell said the move fits with the company's focus on a handful of categories where it believes it can be most competitive including apparel, items for children and health and wellness-related goods. Target will continue to handle the sale of over-the-counter drugs. (Ramakrishan and Layne, 6/15)
The Washington Post:
CVS’s Purchase Of Target’s Pharmacy Business: The Good And Bad For Consumers
The announcement Monday by CVS Health Corp. that it would purchase Target's pharmacies and clinics for $1.9 billion represents a major acceleration in the retail clinic revolution. Since the concept of having a small, walk-in doctor's office inside a store made its debut in the American market in 2000, millions of consumers have taken advantage of the convenience of being able to get a flu shot, refills for prescriptions, and treatment for things like ankle sprains or a cough at the same time they are shopping. (Cha, 6/15)
