Beacon (NASDAQ:BECN) (the “Company”) announced today that it has entered into an accelerated share repurchase agreement (“ASR”) with Citibank N.A to repurchase $250 million of Beacon’s common stock. This ASR is in addition to the $125 million accelerated share repurchase agreement, which was announced in March and is expected to be settled no later than the end of June.
“Today’s announcement to further accelerate our share repurchase program reaffirms Beacon’s commitment to creating shareholder value through our capital allocation strategy,” said Julian Francis, President & CEO of Beacon. “We now expect to complete at least three-quarters of the previously announced $500 million share repurchase authorization in 2022. We continue to have great confidence in our Ambition 2025 strategic plan outlined during our recent Investor Day. With multiple levers for growth and margin enhancement, combined with the inherent resiliency of our business and this team’s focused execution, we are beginning to deliver on Beacon’s potential.”
Under the ASR, Beacon will make a pre-payment of $250 million to Citibank, N.A and will initially receive a prorated quantity of the Company’s common stock. The final number of shares to be repurchased will be based on the daily volume-weighted average price of Beacon’s common stock during the term of the ASR, less a discount and subject to adjustments pursuant to the terms of the ASR. The final settlement of the ASR is expected to be completed in the fourth quarter of 2022.
