CVS Health plans to split into two separate companies

US-based healthcare company CVS Health announced that it plans to create two independent companies by separating its activities in retail pharmacy and healthcare solutions.

In the statement made by CVS Health, it was stated that the board of directors decided to restructure the company's operations after a comprehensive strategic evaluation process.

In this context, it was reported that it is aimed to establish two independent publicly held companies that will operate in the fields of health solutions and retail pharmacy.

It was noted that the first company to operate in the field of health solutions will include Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health. It was reported that the company in question will continue to use the name CVS Health during the transition period.

It was stated that the second company that will undertake retail pharmacy activities will operate under the name CVS Pharmacy. It was stated that this company will include approximately 9 thousand CVS pharmacies, pharmacy services offered by mail, MinuteClinic and Health100 technology services.

The separation is expected to be completed in the first half of 2028.

In the statement, it was stated that both companies will continue their activities with more focused strategies and independent capital structures. It was noted that the companies are expected to have strong free cash flow and investment grade credit ratings.

It was reported that the separation process is expected to be completed in the first half of 2028, after obtaining the necessary approvals and meeting the relevant conditions.

It was stated that upon completion of the process, existing CVS Health shareholders will own shares of both companies.

It was emphasized that CVS Health will continue its current operations and continue to provide uninterrupted service to its customers until the separation process is completed.