Walgreens Boots Alliance completes $992m share sale of Cencora, Inc.

In a significant financial maneuver, Walgreens Boots Alliance, Inc. (Nasdaq: WBA) has announced the sale of its shares in American drug wholesale company Cencora, Inc. (NYSE: COR) for total proceeds of approximately $992 million. The transaction, detailed on February 7, 2024, includes the sale of shares worth about $942 million pursuant to Rule 144, accompanied by a concurrent $50 million share repurchase by Cencora. This strategic sale marks a pivotal step in Walgreens Boots Alliance’s ongoing efforts to optimize its capital structure and enhance its corporate agility.

The proceeds from this sale are earmarked primarily for debt reduction and general corporate purposes, underlining Walgreens Boots Alliance’s commitment to fortifying its financial foundation. This move is integral to the company’s broader strategy to cultivate a more capital-efficient health services strategy, leveraging its extensive retail pharmacy network.

Despite the reduction of Walgreens Boots Alliance’s ownership in Cencora’s common stock from approximately 15 percent to 13 percent, the transaction does not affect the enduring partnership between the two entities. Since 2013, Cencora has been a key strategic ally for Walgreens Boots Alliance, contributing to its growth and innovation in the healthcare sector. The companies emphasize that their long-term collaboration remains intact, with Ornella Barra, Chief Operating Officer, International of Walgreens Boots Alliance, continuing her role on Cencora’s Board of Directors.

Walgreens Boots Alliance stands as a global leader in integrated healthcare, pharmacy, and retail, with a legacy spanning over 170 years. With approximately 12,500 locations across the U.S., Europe, and Latin America, the company is at the forefront of reimagining local healthcare to foster better health and more joyful lives. Employing over 330,000 individuals worldwide, Walgreens Boots Alliance operates a portfolio of renowned consumer brands and healthcare investments, driving innovation and accessibility in healthcare services.

This transaction reflects Walgreens Boots Alliance’s strategic foresight in managing its financial resources to support its long-term vision for healthcare innovation. By reallocating capital towards debt reduction and corporate objectives, Walgreens Boots Alliance is strengthening its position to navigate the evolving healthcare landscape effectively. This move not only demonstrates financial prudence but also reaffirms the company’s dedication to its strategic partnership with Cencora, ensuring sustained collaboration in their mutual pursuit of healthcare excellence. As the healthcare industry continues to evolve, such strategic financial decisions are crucial for companies looking to maintain and enhance their competitive edge and commitment to improving global health outcomes.