Walgreens has sold more shares of drug distributor Cencora for proceeds of about $400 million … [+]
Walgreens Boots Alliance has sold more shares of drug distributor Cencora for proceeds of approximately $400 million, which will be used for “debt repayment and general corporate purposes.”
The share sale, which comes as CEO Tim Wentworth works on a financial turnaround of the iconic drugstore chain, reduces Walgreen’s stake in Cencora from 13% to 12%.
“Proceeds from Walgreens Boots Alliance will be used primarily for debt service and general corporate purposes as the company continues to build a more capital-efficient healthcare services strategy, rooted in its retail pharmacy footprint, to deliver care to communities and create value for partners,” Walgreens said in a news release Wednesday evening.
Walgreens began reducing its stake in the distributor, formerly known as AmerisourceBergen, and other companies over the past three years to raise money for other priorities, such as creating a new specialty pharmacy company and putting more health care services in its stores. Walgreens sold more shares in Cencora worth more than $990 million earlier this year.
Walgreens said the latest stock sale “does not impact the long-standing partnership between the two companies.”
“Walgreens Boots Alliance remains fully committed to its strategic, mutually beneficial relationship with Cencora, which has been a strong and trusted partner since 2013,” Walgreens said. “Chief Operating Officer, International of Walgreens Boots Alliance, Ornella Barra, will remain a member of Cencora’s Board of Directors.”
