CVS Caremark announced on Monday that it had entered into a definitive agreement to purchase Miami-based Navarro Discount Pharmacy, the largest Hispanic-owned drugstore chain in the U.S.
Navarro, with annual sales of more than $340 million, operates 33 pharmacies as well as Navarro Health Services, a specialty pharmacy for patients suffering from chronic or complex diseases.
"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," said Helena Foulkes, president, CVS/pharmacy, in a statement.
In addition to its pharmacies, Navarro caters to its core Hispanic customer base with products and services not found in conventional drugstores. According to a release announcing the deal, Navarro sells wireless phones, designer fragrances and a large assortment of over-the-counter drugs and supplements to differentiate from competitors. It also offers a pediatric window for parents, a "Mommy and Me" club, compounding pharmacy services and a club for patients with diabetes.
Navarro CEO Juan Ortiz told the Miami Herald that the chain customizes its offerings based on the needs of consumers. He said locations in Miami have more Cuban, Puerto Rican and Dominican Republic customers and that is reflected in the products and services offered there. The company's store in Homestead caters to more Mexican consumers.
"We are a community pharmacy and, as such, we cater to the neighborhoods and businesses around our stores," Mr. Ortiz told the Herald in an interview last year.
"The Navarro brand is one of the most recognizable in the Hispanic marketplace," CVS/pharmacy spokesman Mike DeAngelis said in an email to The Associated Press. "We expect to maintain their current product mix and will learn from our Navarro colleagues about Hispanic marketing and merchandising."
How likely is Navarro Discount Pharmacy to be successful after being acquired by CVS?