CVS Health Corp (NYSE:CVS) has indicated that it is planning to buy 99 pharmacies of retail and pharmacy company Schnucks Market Inc. across the Midwest.
CVS to acquire pharmacies in Schnucks stores
The company indicated that it will acquire and operate the pharmacies inside Schnucks grocery stores as CVS Pharmacies. However, not all the acquired pharmacies in the grocery stores will continue operations. According to a company release, CVS and its subsidiaries will purchase the prescription files of 11 pharmacies and relocate them to its nearby locations. However, the company didn’t provide a list of the pharmacies to transfer services until the transaction is finalized.
The financial terms of the deal were not revealed, but this will offer CVS significant presence in the Walgreens Boots Alliance (NASDAQ: WBA) dominated Midwest. However, the company confirmed that their arrangement is similar to that it made five years ago when it acquired Target (NYSE: TGT) stores pharmacies.
Founded in 1939 in St. Louis, the family-owned company has around 112 stores across Iowa, Illinois, Indiana, Missouri, and Wisconsin. Schnucks has over 13,500 employees, and CVS indicated that it will advertise all pharmacy technician and pharmacists jobs, and the Schnuck employees are eligible to apply.
Acquisition to give CVS Health presence in the Midwest
Jon Roberts the chief operating officer of CVS Health indicated that the move to open pharmacies at Schnucks locations is meant to enhance access to quality care as well as meet customer needs across the Midwest. On its part, Schnucks considers the alignment with CVS Health as an expansion opportunity for its focus on wellness and Health.
Todd Schnuck, the CEO and Chairman of Schnucks, indicates that the partnership will allow the retailer to offer high-quality services to its customers in the way they have come to expect. Equally, it will be a way of supporting the company’s goal of nourishing people’s lives. The chairman also added that it is a chance for the company’s pharmacy teammates to advance their careers with a leading retail pharmacy store.