Cencora Announces Common Share Repurchase From Walgreens Boots Alliance

Rhea-AI Summary

Cencora (NYSE: COR) has announced an agreement to repurchase approximately $50 million worth of its common stock from Walgreens Boots Alliance Holdings The repurchase will coincide with Walgreens Boots Alliance's sale of Cencora shares under Rule 144 of the Securities Act of 1933.

The share repurchase will be executed at a price equal to the Rule 144 sale price, with repurchased shares being held in treasury. This transaction occurs alongside the early settlement of previously disclosed variable prepaid forward sale contracts between Walgreens Boots Alliance and financial institutions.

Walgreens Boots Alliance's remaining Cencora shares continue to be pledged as security for other existing variable prepaid forward sale contracts. Cencora, ranked #10 on the Fortune 500 and #18 on the Global Fortune 500, generates over $290 billion in annual revenue and employs 46,000+ team members globally.

Positive

• $50 million share repurchase program demonstrates commitment to returning value to shareholders
• Strong market position evidenced by Fortune 500 rankings (#10 US, #18 Global)
• Substantial annual revenue exceeding $290 billion

Negative

• Significant shareholder (Walgreens Boots Alliance) reducing its stake in the company
• Remaining shares held by Walgreens Boots Alliance are pledged as collateral

Insights

Financial Analyst

This $50 million share repurchase announcement reveals several strategic implications for Cencora's capital management and shareholder structure. The repurchase, representing approximately 0.1% of Cencora's $48 billion market capitalization, is relatively modest in size but signals important developments in the WBA-Cencora relationship.

The transaction's structure is particularly noteworthy. By executing the repurchase concurrently with WBA's Rule 144 sale, Cencora ensures an orderly process that minimizes potential market disruption. This approach helps maintain price stability during WBA's partial exit, while the treasury stock designation provides flexibility for future corporate actions.

The timing and mechanism of WBA's share disposition, involving early settlement of variable prepaid forward contracts, suggests a carefully orchestrated unwinding of their position. However, WBA's remaining Cencora shares continue to be pledged as collateral for other forward contracts, indicating a structured, gradual reduction rather than an immediate full exit. This measured approach helps prevent negative market sentiment while maintaining the strategic partnership between both companies.

For investors, this transaction represents a positive use of capital that:

• Demonstrates management's confidence in Cencora's valuation
• Provides an efficient mechanism for managing shareholder transitions
• Maintains stability in the company's ownership structure
• Shows prudent capital allocation within the existing share repurchase program

Given Cencora's position as the #10 Fortune 500 company with over $290 billion in annual revenue, this transaction reflects sophisticated financial management while preserving strategic relationships important to its pharmaceutical distribution business.

CONSHOHOCKEN, Pa.--(BUSINESS WIRE)-- Cencora, Inc. (NYSE: COR) today announced that it has agreed to repurchase shares of its common stock from Walgreens Boots Alliance Holdings LLC in the amount of approximately $50 million in concurrence with Walgreens Boots Alliance’s sale of Cencora shares pursuant to Rule 144 under the Securities Act of 1933, as amended.

Cencora intends to repurchase shares from Walgreens Boots Alliance at the price per share equal to the price in the Rule 144 sale. The concurrent share repurchase will be made under Cencora’s share repurchase program and the repurchased shares will be held in treasury.

The sale of Cencora shares by Walgreens Boots Alliance is occurring simultaneously with the early settlement of certain previously disclosed variable prepaid forward sale contracts with financial institutions and the return of certain Cencora shares pledged to the financial institutions as security for those contracts. Walgreens Boots Alliance’s remaining ownership of Cencora’s common stock continues to be pledged to financial institutions to secure its obligations under other existing variable prepaid forward sale contracts.

About Cencora

Cencora is a leading global pharmaceutical solutions organization centered on improving the lives of people and animals around the world. We partner with pharmaceutical innovators across the value chain to facilitate and optimize market access to therapies. Care providers depend on us for the secure, reliable delivery of pharmaceuticals, healthcare products, and solutions. Our 46,000+ worldwide team members contribute to positive health outcomes through the power of our purpose: We are united in our responsibility to create healthier futures. Cencora is ranked #10 on the Fortune 500 and #18 on the Global Fortune 500 with more than $290 billion in annual revenue.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250206144401/en/

Bennett S. Murphy

Senior Vice President, Head of Investor Relations & Treasury

Bennett.Murphy@cencora.com

Source: Cencora

FAQ

How much is Cencora (COR) spending on its share repurchase from Walgreens Boots Alliance?

Cencora is spending approximately $50 million to repurchase shares from Walgreens Boots Alliance.

What is the price per share for Cencora's (COR) share repurchase from Walgreens?

The repurchase price will be equal to the price of Walgreens Boots Alliance's Rule 144 sale price.

What will happen to the Cencora (COR) shares repurchased from Walgreens?

The repurchased shares will be held in Cencora's treasury.

What is Cencora's (COR) current annual revenue?

Cencora generates more than $290 billion in annual revenue.

What happens to Walgreens' remaining stake in Cencora (COR)?

Walgreens Boots Alliance's remaining Cencora shares continue to be pledged as security for existing variable prepaid forward sale contracts with financial institutions.