CVS Buying Target’s Pharmacies

CBJ — CVS Health will acquire Target’s U.S. pharmacy and clinics businesses for about $1.9 billion to boost sales and prescription volumes.

The transaction would see CVS pick up more than 1,660 Target pharmacies across 47 states and operate them through a store-within-a-store format.

According to a statement released to the media, Target’s nearly 80 clinics will be rebranded as MinuteClinic and CVS will open up to 20 new clinics in Target stores within three years of the deal closing.

CVS’s shares were up 0.4% at $102.65 in pre-market trading on Monday, while Target’s were flat at $79.50.

CVS plans to finance most of the deal through debt.