Walgreens Boots Alliance has sold more shares of drug distributor Cencora for proceeds of about $400 million, which will be used for “debt paydown and general corporate purposes.”
The stock sale, which comes as chief executive officer Tim Wentworth works on a financial turnaround of the iconic drugstore chain, brings Walgreens stake in Cencora down to 12% from 13%.
“Proceeds to Walgreens Boots Alliance will be used primarily for debt paydown and general corporate purposes, as the company continues to build out a more capital-efficient health services strategy rooted in its retail pharmacy footprint, to deliver care for communities and create value for partners,” Walgreens said Wednesday evening in a press release.
Walgreens began reducing its stake in the distributor, formerly known as AmerisourceBergen, and other businesses in the last three years to raise money for other priorities such as the creation of a new specialty pharmacy business as well as putting more healthcare services in its stores. Walgreens earlier this year sold more stock in Cencora valued at more than $990 million.
Walgreens said the latest stock sale has “no impact to the long-term partnership between the two companies.”
“Walgreens Boots Alliance remains fully committed to the 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 continue to serve on Cencora’s Board of Directors.”
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