Fortune Brands Expands Share Repurchase AuthorizationJuly 16th, 2018 by Editor
The board of directors for Fortune Brands Home & Security Inc., the parent company of Therma-Tru Doors and Master Lock security products, has authorized the repurchase of up to an additional $400 million of shares of the company’s common stock over the next two years on the open market or in privately negotiated transactions in accordance with applicable securities laws.
Year to date, Fortune Brands has repurchased 10 million of its shares at a cost of approximately $600 million. The company still has approximately $100 million remaining from a prior authorization that expires April 30, 2020, bringing the total authorization under the expanded program to approximately $500 million.
“We strongly believe that repurchasing our shares at current prices represents an attractive use of capital. Our businesses are executing well, and consumer demand for housing and home products remains solid,” said Chris Klein Fortune Brands CEO. “While we see significant value in FBHS shares, we also remain very active in exploring potential acquisitions. We are currently engaged in discussions with potential acquisition targets and will maintain the financial flexibility to take advantage of strategic opportunities as they unfold.”
Additionally, the board declared a quarterly cash dividend of $0.20 per common share. The dividend is payable on September 19, 2018, to stockholders of record as of the close of business on August 31, 2018.
“The new share repurchase authorization and dividend demonstrate the Board’s confidence in our business execution, strategic plan and long-term cash flow potential,” said Patrick Hallinan, Fortune Brands CFO. “We will continue to use our strong cash flow and balance sheet to drive incremental shareholder value by investing in Fortune Brands’ businesses, pursuing accretive acquisitions, and returning cash to shareholders.”