Date
21 January 2017
With the new acquisition, CVS has bolstered its ability to command lower prices from drug makers. The company already operates 7,800 drugstores across the US. Photo: Internet
With the new acquisition, CVS has bolstered its ability to command lower prices from drug makers. The company already operates 7,800 drugstores across the US. Photo: Internet

CVS buying Target pharmacy and clinic business for US$1.9 bln

Drugstore operator CVS Health Corp. is buying Target Corp. pharmacies and clinics in a US$1.9 billion deal.

The acquisition by the second largest US drugstore chain covers more than 1,660 Target pharmacies in 47 states with about US$4 billion in annual sales.

CVS will also buy nearly 80 Target clinics, according to Reuters.

It’s the second large acquisition in as many months for CVS which already operates 7,800 stores, further bolstering its ability to command lower prices from drug makers.

In May, CVS snapped up healthcare services firm Omnicare for US$10.1 billion.

The sale frees up Target from a costly business line that has struggled to make a profit, Reuters says.   

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