Walgreens Boots Alliance has offered extra shares of drug distributor Cencora for proceeds of about $1.1 … [+]
Walgreens Boots Alliance has offered extra shares of drug distributor Cencora for proceeds of about $1.1 billion, which might be used “primarily for debt paydown and common company functions.”
The inventory sale, which comes as chief govt officer Tim Wentworth works on a monetary turnaround of the long-lasting drugstore chain, brings Walgreens stake in Cencora right down to 10% from 12%.
“Proceeds to Walgreens Boots Alliance might be used primarily for debt paydown and common company functions, as the corporate continues to construct out a extra capital-efficient well being providers technique rooted in its retail pharmacy footprint,” Walgreens stated in an announcement launched Thursday night. “The sale has no influence to the long-term partnership between the 2 corporations. Walgreens Boots Alliance stays absolutely dedicated to the strategic, mutually helpful relationship with Cencora, which has been a powerful and trusted companion since 2013.”
Walgreens started decreasing its stake within the distributor, previously often known as AmerisourceBergen, and different companies within the final three years to lift cash for different priorities such because the creation of a brand new specialty pharmacy enterprise in addition to placing extra healthcare providers in its shops. Walgreens earlier this 12 months offered extra inventory in Cencora valued at greater than $990 million and in Could offered extra inventory valued at $400 million.
In the meantime, the corporate in June stated it was contemplating closing lots of of “underperforming” shops. To show issues round, Walgreens disclosed it was finalizing a “footprint optimization program” to shut sure underperforming shops of the corporate’s greater than 8,600 U.S. places. Manmohan Mahajan, Walgreens govt vice chairman and international chief monetary officer, stated “25% is the general footprint” that executives are evaluating for potential closure.
