Cencora to buy $400 million in stock back from Walgreens

By Ben Glickman

Cencora has agreed to buy about $400 million in stock back from Walgreens Boots Alliance, the second time the pharmacy chain has reduced its stake in the company this year as it looks to free up cash to pare down debt.

Walgreens Boots (WBA) said it would use the proceeds for paying down its debt, as well as for general corporate purposes. The company in February sold nearly $1 billion in shares of Cencora (COR) and said it would use proceeds for the same purposes.

Walgreens Boots will have a stake of about 12% in Cencora after the deal, down from its previous holdings of about 13%.

Cencora, a drug distributor, said the deal was an example of its opportunistic approach to buybacks. The company said it now expects $13.35 to $13.55 in adjusted per-share earnings, compared with its previous guidance range of $13.30 to $13.50.

Cencora said the guidance change was to reflect a lower weighted average diluted share count, partially offset by higher net interest expense because of cash being used for repurchases.

Walgreens said the sale did not change the two companies' long-term partnership.

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05-22-24 1806ET

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