DEERFIELD, Ill.--(BUSINESS WIRE)--Jul. 16, 2018--
Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading
home and security products company, today announced that on Friday, July
13, its Board of Directors 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. The
purchases, if made, will occur from time to time depending on market
conditions.
Year to date, Fortune Brands has returned a significant amount of
capital to shareholders, repurchasing 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, chief executive officer, Fortune Brands. “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, chief financial
officer, Fortune Brands. “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.”
The newly announced share repurchase authorization does not obligate the
Company to repurchase any dollar amount or number of shares of common
stock. This authorization is in effect until July 13, 2020, and may be
suspended or discontinued at any time.
About Fortune Brands
Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in
Deerfield, Ill., creates products and services that fulfill the dreams
of homeowners and help people feel more secure. The Company’s four
operating segments are Plumbing, Cabinets, Doors and Security. Its
trusted brands include Moen, Perrin & Rowe, Riobel, Rohl, Shaws and
Victoria + Albert under the Global Plumbing Group (GPG); more than a
dozen core brands under MasterBrand Cabinets;Therma-Tru entry
door systems; and Master Lock and SentrySafe security products under The
Master Lock Company. Fortune Brands holds market leadership positions in
all of its segments. Fortune Brands is part of the S&P 500 Index. For
more information, please visit www.FBHS.com.
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING
STATEMENTS
This release contains certain “forward-looking statements” regarding
business strategies, market potential, future financial performance and
other matters. Where, in any forward-looking statement, we express an
expectation or belief as to future results or events, such expectation
or belief is based on the current plans and expectations at the time of
this press release. Although we believe that these statements are based
on reasonable assumptions, they are subject to numerous factors, risks
and uncertainties that could cause actual outcomes and results to be
materially different from those indicated in such statements, including
the risks described in our Annual Report on Form 10-K as filed with the
Securities and Exchange Commission. Except as required by law, we
undertake no obligation to update or revise any forward-looking
statements to reflect changed assumptions, the occurrence of anticipated
or unanticipated events, new information or changes to future results
over time or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180716005087/en/
Source: Fortune Brands Home & Security, Inc.
Fortune Brands Home & Security, Inc.
Investor and Media Contact:
Kaveh
Bakhtiari, 847-484-4573
kaveh.bakhtiari@fbhs.com
