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. They said Target is seeking locations for new small-format stores that would also have a CVS pharmacy inside.
"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," CVS Health CEO Larry Merlo said in a statement.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."
CVS said it would open 20 new clinics in Target stores within three years of the deal's closing.
The deal is worth $1.2 billion to Target after taxes. The company said it would use the cash to boost its "long-standing capital priorities," including share buybacks.
To finalize the deal, the retailers will have to secure regulatory approval from the U.S. government. Officials suggested the deal could be finished by about the end of 2015, though they said the timing is uncertain.
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