American retailer CVS Health has completed the acquisition of Target's pharmacy and clinics business for about $1.9bn.
CVS Health will own 1,672 pharmacies of Target across 47 states in the US.
The company intends to brand the acquired pharmacies as CVS/pharmacy. The rebranded pharmacies will operate in a store-within-store format.
A CVS/pharmacy will be established in all Target stores to provide pharmacy services. CVS Health intends to open about 20 new clinics within the Target stores in the coming years.
CVS Health will also rebrand 79 of Target's clinics as MinuteClinic. The rebranding of the pharmacies and clinics is expected to be completed in a timeframe of six to eight months.
CVS Health president and CEO said Larry Merlo said: "We look forward to helping Target guests on their path to better health through CVS Health's leading clinical programs, such as Maintenance Choice, Pharmacy Advisor and Specialty Connect.
"In addition, with the Target acquisition we will leverage our unique integrated business model and our scale to drive incremental sales volume and operating profit for the enterprise while providing convenience and cost savings to consumers and payors."
The transaction is expected to reflect in Target's fourth quarter 2015 financial results estimating a pre-tax gain of $575m to $775m, based on the final valuation of the divested assets.