Jarden to Repurchase Up to $500 Million of Its Common Stock
RYE, N.Y.--Jarden's board of directors has approved a new stock-repurchase program, whereby the consumer-products giant will repurchase up to $500 million of its common stock.
In a company statement, Martin Franklin, Jarden's executive chairman, said the program marks an acceleration of its repurchase of shares, and the decision on the new program was made in light of the weakness in Jarden's share price, current market dynamics and the strength of its liquidity. Since mid-July, Jarden's stock has fallen from about $34 per share to about $27.50 a share. The new program "is an appropriate use of cash, in line with our ongoing commitment to increase shareholder value," Franklin said.
In the current quarter, Jarden finished the $150 million share-repurchase program it launched in November in 2010, and then increased in March of last year. "For the past several years," Franklin said, "our key priorities for using our cash have been to reinvest in our business, to pay down debt and to make acquisitions where appropriate. We have made significant progress on these efforts, and they will continue to be a focus."