Target selling pharmacy, clinics to CVS for $1.9B

Target announced it will be selling its pharmacy and clinics to CVS Health Corp for about $1.9 billion, the deal slated to close by the end of the year.

In a news release Monday morning, the pair of retailers said more than 1,660 pharmacies in Target stores will be branded as CVS/pharmacy. Target Corp.'s nearly 80 clinic locations will be rebranded as MinuteClinic and CVS will open up 20 new clinics in Target stores within 3 years once the deal closes.

The Minneapolis-St. Paul Business Journal reported CVS said it would offer comparable jobs for Target's 14,000 in-store health care professionals, but potential layoff expectations are unclear at this time.

"At Target, we've talked a lot about the evolving preferences of our guests and this partnership demonstrates that we're committed to putting them at the forefront of everything we do," said Brian Cornell, Target Chairman and CEO. "By partnering with CVS Health, we will offer our guests industry leading health care services, and at the same time, sharpen our focus on elevating the way we deliver wellness products and experiences to our guests."

The deal allows CVS to tap into new markets and reach more patients. It also includes a plan to open 5 to 10 small, urban TargetExpress stores complete with CVS pharmacies similar to the location in Dinkytown.

MinuteClinic was founded in Minneapolis and first arrived in Target stores about 10 years ago. Target later started its own clinic business and CVS bought MinuteClinic in 2006.
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