Walgreens Boots Alliance has recently sold more shares of drug distributor Cencora for approximately $400 million. The proceeds from the sale will be used for debt paydown and general corporate purposes. This move comes as CEO Tim Wentworth focuses on a financial turnaround for the iconic drugstore chain, reducing Walgreens stake in Cencora from 13% to 12%.
According to a press release from Walgreens, the proceeds will primarily be used for debt paydown and general corporate purposes. The company aims to build a more capital-efficient health services strategy centered around its retail pharmacy footprint to provide care for communities and create value for partners. This stock sale is part of a larger effort by Walgreens to raise funds for other priorities, such as the development of a new specialty pharmacy business and expanding healthcare services in its stores.
Over the last three years, Walgreens has been reducing its stake in Cencora (formerly known as AmerisourceBergen) and other businesses to raise capital for various initiatives. Earlier this year, the company sold more stock in Cencora valued at over $990 million. Despite the recent stock sale, Walgreens emphasized that there will be no impact on the long-term partnership between the two companies.
Walgreens Boots Alliance reiterated its commitment to its strategic and mutually beneficial relationship with Cencora, which has been a reliable partner since 2013. Ornella Barra, Chief Operating Officer, International at Walgreens Boots Alliance, will continue to serve on Cencora’s Board of Directors. This move highlights Walgreens’ dedication to maintaining strong partnerships as it navigates financial challenges and executes its healthcare services strategy.
The sale of additional shares of Cencora by Walgreens Boots Alliance reflects the company’s ongoing efforts to improve its financial position and focus on key strategic initiatives. By reducing its stake in the distributor and other businesses, Walgreens is able to raise funds for debt repayment and corporate purposes. The company’s commitment to its partnership with Cencora and its focus on delivering healthcare services through its retail pharmacy footprint demonstrate its dedication to creating value for communities and partners.
As CEO Tim Wentworth continues to work on a financial turnaround for Walgreens, the sale of shares in Cencora is just one of many steps being taken to strengthen the company’s position and drive growth. With a focus on debt reduction, investment in healthcare services, and the development of new business ventures, Walgreens Boots Alliance is positioning itself for long-term success in the evolving healthcare industry.
