(Reuters) – U.S. drugstore chain Walgreens Boots Alliance on Wednesday said it has cut its stake in pharmaceutical distributor Cencora for the third time in just over six months, pocketing about $992 million.
The proceeds include around $942 million from shares sold as well as about $50 million from a concurrent share repurchase by Cencora, formerly AmerisourceBergen.
Walgreens has been grappling with waning demand for COVID-19 vaccines and testing as well as decreased spending on personal care and beauty products by inflation-weary consumers.
It said it now owns around 13% of Cencora’s common stock from 15% previously, and that it would use the sale proceeds primarily to pay down debt.
The sale will have no impact on their long-term partnership and Walgreens’ chief operating officer, international, Ornella Barra, will continue to serve on Cencora’s board of directors, Walgreens said.
Walgreens sold Cencora shares worth about $674 million in November 2023 and earned about $1.85 billion from a sale in August.
Cencora changed its name from AmerisourceBergen in the second half of 2023 as part of efforts to expand internationally beyond drug distribution.
(Reporting by Pratik Jain in Bengaluru; Editing by Christopher Cushing)
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