Valmont® Industries, Inc. (NYSE: VMI), announced yesterday it has entered into an accelerated share repurchase (ASR) agreement with Citibank, N.A. to repurchase $120 million of the Company’s common stock. The ASR is entered into under Valmont’s previously announced share repurchase program.
Under the terms of the ASR, Valmont will make a pre-payment of $120 million to Citibank, N.A. and will receive an initial delivery of approximately 0.4 million shares. The final number of shares will be based on the daily volume-weighted average share price during the term of the ASR, less an agreed upon discount and subject to adjustments in accordance with the ASR agreement. The ASR transaction is expected to be completed no later than the first quarter of 2024.
President and Chief Executive Officer Avner Applbaum commented, “This ASR, along with on-going opportunistic repurchases in the open market, demonstrate our confidence in the business and our ability to consistently generate cash flows. These actions are an effective way to leverage our strong balance sheet to drive shareholder value. We remain committed to a balanced capital allocation strategy of reinvesting in the business for growth, including acquisitions, and returning cash to shareholders.”
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