NEW YORK (TheStreet) -- Shares of CVS Health Corp. (CVS) are higher by 0.69% to $102.93 in pre-market trading Monday, after the drugstore operator announced that it will acquire Target's (TGT) pharmacy and clinic businesses for roughly $1.9 billion.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio says, "Here's a win for everyone. Plenty of new customers for CVS. Plenty of traffic and bucks up front for Target."
"Both stocks should run even with Greece gumming up the works! " he added.
CVS will buy more than 1,660 Target pharmacies in 47 states.
The two companies said the pharmacies and clinics will be run through a store-within-a-store format.
The pharmacies will continue to be operated in Target stores under the CVS brand.
CVS noted that if the deal closes near the end of the year, its 2016 adjusted earnings per share will be lower by 6 cents, but then add 10 cents in 2017 and 12 cents in 2018 and beyond.
Due to the deal, CVS will cut its share repurchases in 2015 to $5 billion from $6 billion, which will reduce its adjusted 2015 EPS by 1 cents, and 2016 EPS by about 4 cents.
Woonsocket, R.I.-based CVS Health is a pharmacy healthcare provider with business segments in pharmacy services, retail pharmacy and corporate, providing pharmacy benefit management services throughout the U.S.
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