CNBC’s Jim Cramer chats with CVS Health’s Merlo, Target's Cornell about ‘win-win’ deal

NEW YORK — As the industry reeled from the groundbreaking news that CVS Health will acquire Target’s pharmacy business, “Mad Money” host Jim Cramer spoke with both CVS Health president and CEO Larry Merlo and Target chairman and CEO Brian Cornell to get some additional insight into the deal that Cornell described as a “unique, one-off opportunity.”



“I keep telling you about the looming consolidation in the healthcare space. And look, not only did we hear about Anthem potentially bidding for Cigna today, but we also learned that Cramer-fave CVS Health, one of the dozen stocks on my healthcare hot list, is paying $1.9 billion to buy and run all of Target’s in-store pharmacies and clinics,” Cramer said. “… I think it is a win-win.”



During the segment, Merlo explained that the deal not only aligns with CVS Health’s broader healthcare focus and is an appreciation of the retailization of healthcare, but it also enables CVS Health to expand its presence into new markets and will be at least 12 cents accretive in 2018 and beyond.



For Target, Cornell said the deal will, “Continue to strengthen our position in the wellness space because we now have an expert in the space, one that brings scale, experience and capabilities that, we think, will continue to bring a new level experience to our target guests”



Despite some speculation that this partnership marks the beginning of a trend for Target as it works to place a greater focus on its signature categories, Cornell was quick to set the record straight.



“It is absolutely a unique, one-off opportunity. The chance for us to partner with someone who brings scale, experience and expertise into the space and help us fulfill our commitment to wellness with the guest,” Cornell told Cramer. “But you should not expect to see this happen in other places.”