Walgreens makes another move to pay down debt
Retailer sells more shares of Cencora
![Walgreens storefront 1 1_3_0.png Walgreens storefront 1 1_3_0.png](https://eu-images.contentstack.com/v3/assets/blt58a1f8f560a1ab0e/blt2004c90f0f1a1f82/66cc8708a9645b9b1665bb9a/Walgreens_20storefront_201_201_3_0_1.png?width=1280&auto=webp&quality=95&format=jpg&disable=upscale)
To pay down its debt, Walgreens Boots Alliance has sold shares of Cencora, a drug distributor, for around $1.1 billion, reports Reuters.
Walgreens now owns 10% of Cencora and has sold $818 million of the distributor’s shares while agreeing to repurchase shares worth $250 million.
Money from the sale will also be used for general corporate purposes.
During its third-quarter earnings call in late June, Walgreens said it planned to close a “significant number” of underperforming retail locations in the U.S. amid what the retailer described as an extremely challenging operating environment.
Walgreens CEO Tim Wentworth said about 25% of the company’s 8,700 locations were currently underperforming.
Walgreens also said it planned to reduce its stake in VillageMD and will no longer be the majority owner.
The Deerfield, Ill.-based company reported its overall adjusted operating income was down 36.3% year over year to $613 million in the third quarter.
Read more about:
Walgreens Boots Alliance