CVS acquires largest Hispanic-owned drugstore chain Navarro Discount Pharmacy
What: Retail giant CVS Caremark, one of the nation’s largest pharmacy chains, has acquired Navarro Discount Pharmacy , the country’s largest Hispanic-owned drugstore chain for an undisclosed sum and through a deal still subjected to customary conditions.Navarro will continue operating with its original name.
Why it matters: The acquisition helps CVS to strengthen its’ position in the Hispanic marketplace and get more of the fastest growing segment of the U.S. population. Drugstore chains are large advertisers as there is heavy competition in the sector with CVS, Walgreens and Rite Aid vieying for consumers. They are also large print (pre-print) advertisers.
Retail giant CVS Caremark, the New York Stock Exchange-trade company based in Woonsocket, Rhode Island, has agreed to acquire Miami-based drugstore chain Navarro Discount Pharmacy. Financial terms weren’t disclosed and the deal is still subject to customary conditions, including regulatory approval according to CVS’ sources.
The deal includes Navarro Health Services, a pharmacy that caters to patients who have complex or chronic diseases.Following the acquisition, Navarro’s 33 stores will continue to operate under the Navarro Discount Pharmacy name.
The acquisition reflects a long-running trend of consolidation in the retail drugstore sector and a a way for CVS to get more of the fastest growing segment of the U.S. population. CVS Caremark is one of the nation’s largest pharmacy chains with 7,600 stores. Navarro will definitely help to strengthen its’ position in the Hispanic marketplace.
The acquisition reflects a long-running trend of consolidation in the retail drugstore sector and a a way for CVS to get more of the fastest growing segment of the U.S. population.
Navarro is the country’s largest Hispanic-owned drugstore chain and has been operating in Miami for more than 50 years. The Hispanic chain has annual sales of more than US $340 million.Over the years, it has focused on Hispanic consumers with products not found in traditional drugstore chains such as wireless phones, designer fragrances and a host of ethnic products, according to what chief executive Juan M. Ortiz told the Miami Herald.
Navarro offers from pharmacy and compounding pharmacy services, to a club for patients with diabetes and a “Mommy and Me” club. It was founded in Havana in 1940 and relocated to Little Havana in 1961 .Nowadays it has 33 locations and also its own private, bilingual label called Vida Mia. Stores in Miami cater more to Cuban, Puerto Rican clients and those from the Dominican Republic, while its Homestead location focuses more on Mexican interests.
“The Navarro brand is one of the most recognizable in the Hispanic marketplace.We expect to maintain their current product mix and will learn from our Navarro colleagues about Hispanic marketing and merchandising,” CVS/pharmacy spokesman Mike DeAngelis said.
“The acquisition of Navarro will strengthen CVS/pharmacy’s position in the Hispanic marketplace, the fastest growing demographic in the U.S., and we are excited to be adding the Navarro Discount Pharmacy brand to the CVS/pharmacy family,” Helena Foulkes, president of CVS/pharmacy, said in a statement.
“We are a community pharmacy and, as such, we cater to the neighborhoods and businesses around our stores,” Ortiz said.
MBF Healthcare Partners, the Coral Gables private investment firm headed by Miguel “Mike” Fernandez, acquired a majority stake in Navarro in 2007.
Drugstore chains are large advertisers as there is heavy competition in the sector with CVS, Walgreens and Rite Aid vieying for consumers. They are also large print (pre-print) advertisers.New York City based UniWorld Group handles pre-prints and circulars for CVS.