Herbalife Ltd. announced a $250 million share repurchase program expected to generate sustainable free cash flow and provide an additional avenue for long-term value. Herbalife stated that this program will provide “additional flexibility to opportunistically repurchase shares when management and the board believe doing so represents an attractive use of capital.”
Under this authorization made by the company’s board of directors, shares may be repurchased through open market purchases, privately negotiated transactions and accelerated share repurchase agreements.
“We believe our strong financial profile and free cash flow generation provide us with significant flexibility to invest in the business, maintain a strong balance sheet and return capital to shareholders,” said John DeSimone, Herbalife Chief Financial Officer. “Given our confidence in the long-term outlook for the company and our view of the value represented by our shares at current levels, we believe repurchasing our stock represents a compelling use of capital and an attractive opportunity to enhance long-term shareholder returns.”
Herbalife stated that it “intends to continue executing a disciplined and balanced capital allocation strategy focused on investing in organic growth initiatives, pursuing strategic opportunities, maintaining appropriate financial flexibility and returning excess capital to shareholders.”
