Vontier Corporation (“Vontier”) (NYSE:VNT) today announced that it has entered into a $250 million accelerated share repurchase agreement (the “ASR Agreement” or “ASR”) with Citibank, N.A. Vontier will acquire the shares as part of its previously approved $500 million share repurchase authorization announced in May 2021.
“Vontier is in the midst of a multi-year portfolio transformation, and this ASR reflects our strong conviction in the business, its growth prospects, and the strength of its free cash flow as we reposition Vontier to lead in the energy transition and solving next-gen mobility and transportation challenges,” said Mark D. Morelli, President and Chief Executive Officer.
“Our Board and management are committed to accretive capital allocation with accelerated share repurchase as an immediate priority to create shareholder value. Vontier’s long term capital allocation priorities aim to balance disciplined investing in organic and inorganic opportunities with returning capital to shareholders. Given the strength of our balance sheet, we are confident in our ability to achieve both objectives while maintaining our investment grade ratings,” Morelli continued. “We will continue to align our capital allocation priorities and strategic portfolio optionality to the benefit of our shareholders as we execute on the initiatives underway to drive further portfolio diversification and profitable growth.”
Subject to completion of this ASR, Vontier is expected to have approximately $250 million remaining under its current repurchase authorization. While the amount and timing of future share purchases are subject to a number of factors, including Vontier’s business, share price and general market conditions, the Company intends to continue repurchases later in the year to drive shareholder value. The remaining share repurchases may be made from time to time through open market purchases, 10b5-1 plans, future ASR programs or through privately negotiated transactions.
