Nomad launches USD 300 million share repurchase program
Nomad Foods, the U.K.-based owner of the Birds Eye, Iglo, and Findus brands, will embark upon a new share repurchase program, with its board of directors authorizing transactions up to USD 300 million (EUR 272.7 million), representing approximately 9 percent of the frozen food firm’s market capitalization.
According to a company announcement, acquisitions pursuant to the stock repurchase program may be made from time to time through a combination of open market repurchases, privately negotiated transactions, accelerated share repurchase transactions, or other derivative transactions, at the company's discretion, and as permitted by securities laws and other legal requirements.
Specific timings and the amount of repurchases will vary based on market conditions and other factors, it said.
“Recent market dislocations have presented a unique opportunity for us to deploy available capital to generate compelling and accretive returns for our shareholders,” Nomad Foods’ Co-Chairman and Founder Noam Gottesman said. “This authorization reflects the board’s confidence in the health, growth prospects and free cash flow profile of our business.”
Gottesman said that the share repurchase program does not preclude Nomad from pursuing its agenda surrounding mergers and acquisitions.
“We remain actively engaged on several potential transactions and believe we have the financial capacity to both repurchase shares and acquire attractive food businesses while maintaining a prudent leverage profile,” he said.
The company also explained that in connection with the share repurchase program, it may enter into Rule 10b5-1 trading plans, which would permit it to repurchase shares at times when it might otherwise be prevented from doing so under certain securities laws.
Nomad Foods, listed under the symbol NOMD on the New York Stock Exchange, was formed in 2015 following the acquisition of Iglo Group. It manufactures, sells, and distributes a range of branded products, including seafood products, across 13 European countries, with the United Kingdom, Italy, Germany, Sweden, and France representing its five largest markets.
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