Hayward Holdings, Inc. (the “Company”) (NYSE:HAYW) a global designer, manufacturer and marketer of a broad portfolio of pool equipment and associated automation systems, today announced the company’s board of directors has approved a new stock repurchase program authorizing the repurchase of up to $450 million of the company’s outstanding common stock over the next three years. This new program will be funded using cash on hand and cash generated from operations.
“We are pleased to announce the initiation of a stock repurchase program, which reflects our strong cash flow generation capability and significant deleveraging of our balance sheet since going public earlier this year,” said Hayward’s Chief Financial Officer Eifion Jones. “While our capital allocation strategy continues to prioritize organic and inorganic investments, including the recent addition of a new distribution center and two tuck-in technology acquisitions, our capital structure provides Hayward with the flexibility to return capital to shareholders, including negotiated transactions with our sponsors.”
“Our business is performing well and we remain confident in our ability to continue executing our growth initiatives in the years ahead,” said Hayward’s Chief Executive Officer Kevin Holleran. “We are supportive of increased float and liquidity in our shares over time, and also believe our stock represents an attractive use of cash as part of our balanced approach to capital allocation.”
Under the repurchase program, Hayward Holdings may purchase shares of common stock on a discretionary basis from time to time and is primarily expected to be conducted through privately negotiated transactions with Hayward Holding’s equity sponsors, as well as through open market repurchases or other means, including through Rule 10b-18 trading plans or through the use of other techniques such as accelerated share repurchases. The actual timing, number and nature of shares repurchased will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. The repurchase program does not obligate the company to acquire any number of shares in any specific period or at all and may be amended, suspended or discontinued at any time at the company’s discretion.
