OPERATIONS

CVS acquires infusion services provider

BY Dan Berthiaume

Woonsocket, R.I. – CVS Caremark has completed the acquisition of Coram LLC, the specialty infusion services and enteral nutrition business unit of Apria Healthcare Group Inc. Coram cares for approximately 165,000 patients annually and has 4,600 employees, including 600 nurses, 350 pharmacists and 250 dietitians, operating primarily through 85 branch locations and six centers of excellence for patient intake.

Coram is expected to generate approximately $1.4 billion in revenues during the first twelve months following the close of the deal. Including one-time transaction and integration costs, as well as the interest associated with the $2 billion of senior notes issued to fund this transaction, the transaction is expected to have an immaterial impact on CVS Caremark’s overall financial results in 2014. The transaction is expected to add $0.03 to $0.05 cents to the company’s adjusted earnings per share in 2015, the first full year following the close of the deal.

Barclays served as the company’s financial advisor on the transaction, while Sullivan and Cromwell LLP served as legal advisor, and Dechert LLP served as legal advisor from an anti-trust perspective.

"With the acquisition of Coram, we have expanded our competitive offerings in specialty services," said Jon Roberts, president of CVS Caremark Pharmacy Services. "From a capabilities perspective, no other organization brings the range of specialty assets, the depth of experience and integration of care that the combination of CVS Caremark and Coram can deliver."

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News

Target to test Express concept this summer

BY CSA STAFF

A 20,000-sq.-ft. store called TargetExpress is set to become the newest addition to the retailer’s portfolio offormats when it opens this July in downtown Minneapolis.

In an interview with The New York Times, Target EVP for property development John Griffith said Target signed a lease last week for a space on the ground floor of an apartment building called the Marshall which is under construction near the University of Minnesota campus. The store is scheduled to open July 27.

As more people, and especially young people, opt to live in cities rather than suburbs, Target wanted to remain convenient, according to Griffith.

“Many of them grew up with a Target experience,” Griffith was quoted as saying in The New York Times. “Now, they show up at their cool little bungalow they’re redoing, they’re five miles from downtown, and yet, Target is a little bit of an effort to get to.”

Introduction of TargetExpress follows the opening two years ago of a much larger format called City Target that was designed for urban markets. Early versions of City Target were in the vicinity of 100,000-sq.-ft. which limits the expansion potential of a format whose name implies it was created for dense markets. The typical Target store in a suburban location measures around 135,000-sq.-ft., while the Super Target concept is roughly 175,000-sq.-ft.

The name TargetExpress is reminiscent of a format Walmart introduced several years ago in Northwest Arkansas and select markets nationwide. Like Target, Wamart located one of its approximately 15,000-sq.-ft. stores near the campus of the University of Arkansas. It also opened a few in select urban locations such as Chicago, but the majority are located in rural markets where Walmart is looking to fend off competition from the likes of Dollar General and Family Dollar. Target does not face the same competitive pressures from dollar stores, but its initial Express format is said to stock a familiar and highly edited mix of grocery, healthcare, apparel, home décor and electronics.

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REAL ESTATE

TargetExpress format in works

BY Marianne Wilson

New York — Target Corp. has signed a lease to open a 20,000-sq.-ft. location in Minneapolis that will serve as a test of a new format called TargetExpress, the New York Times reported. The new unit, considerably smaller than CityTarget’s 80,000- to 125,000-sq.-ft. footprint, would be the chain’s smallest store to date.

The test store will be located in the base of an apartment building currently under construction near the University of Minnesota campus, the report said. It is scheduled to open in late summer, with grocery and pharmacy items, and an edited of basic clothing, home décor and electronics.

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