The struggling drugstore chain Walgreens will get about $1.1 billion for selling another slice of its stake in drug distributor Cencora.
Walgreens said after markets closed Thursday that it will use the proceeds mostly to pay down debt and for general corporate purposes. The deal reduces Walgreens’ stake in Cencora to about 10% from 12%.
Walgreens also said in May that it was selling some Cencora shares for $400 million. That deal shaved its stake in the company down from 13%.
Leaders of Walgreens Boots Alliance Inc. said in late June that they were finalizing a plan to turnaround its U.S. business. That push could result in the closing of hundreds of underperforming stores in the next few years.
The company, like its competitors, has been struggling for years with tight reimbursement for the prescriptions it sells as well as other challenges like rising costs to operate its stores.
The Deerfield, Illinois, company also has been backing away from a plan to add primary care clinics next to some if its stores.
The company started 2024 by cutting the dividend it pays shareholders to get more cash to grow its business. Walgreens reported quarterly results at the end of June that missed analyst earnings expectations. The company cut its forecast for its fiscal year, which ends this month.
Shares of Walgreens have shed more than half their value so far this year while broader indexes have climbed. In premarket trading the shares edged down 9 cents to $11.72.
Cencora shares fell 1.3% to $241.24.
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