ST. LOUIS, Aug. 11, 2021 /PRNewswire/ -- Energizer Holdings
Inc. (NYSE: ENR) (the "Company") announced today it has entered
into an agreement to repurchase an aggregate of $75 million of its common stock in an accelerated
share repurchase ("ASR") program with JPMorgan Chase, National
Association ("JPM"). This equates to approximately 1.9 million
shares, at the closing price on August 10,
2021, and represents approximately 2.6% of Energizer's fully
diluted outstanding stock(1). The Company is expected to
fund the ASR program using available cash on hand and revolver
borrowings. The Company will repurchase shares under the ASR
Program as part of its existing 7.5 million share repurchase
authorization, which was approved by its Board of Directors in
November 2020.
"This accelerated share repurchase transaction is an important
component of our capital allocation strategy," said Mark Lavigne, Chief Executive Officer. "The
program demonstrates our confidence in Energizer's strategy and
future growth prospects and underscores our commitment to deliver
value to our shareholders."
Under the terms of the ASR agreement, dated August 11, 2021, Energizer will make an initial
payment of $75 million to JPM and
receive an initial delivery of approximately 1.5 million shares of
Energizer's common stock. The final number of shares to be
repurchased under the ASR program will be based on the average of
the daily volume-weighted average prices of Energizer's common
stock during the repurchase period, less a discount, and is subject
to adjustments pursuant to the terms of the ASR agreement. The
final settlement of the ASR program is expected to be completed
before the end of the calendar year 2021.
Energizer expects to have ample financial capacity to sustain
its balanced approach to capital allocation. This includes
investments in its categories and brands to enhance growth and
innovation and improve profitability, return capital to
shareholders through dividends and opportunistic share repurchases,
execute strategic M&A and pay down debt.
About Energizer:
Energizer Holdings Inc. (Energizer, NYSE: ENR), headquartered in
St. Louis, is one of the world's
largest manufacturers and distributors of primary batteries,
portable lights, and auto care appearance, performance, refrigerant
and fragrance products. Its portfolio of globally recognized brands
includes Energizer®, Armor All®, Eveready®, Rayovac®, STP®, Varta®,
A/C Pro®, Refresh Your Car!®, California Scents®, Driven®, Bahama
& Co.®, LEXOL®, Eagle One®, Nu Finish®, Scratch Doctor® and
Tuff Stuff®. As a global, branded consumer products company,
Energizer's mission is to lead the charge to deliver value to its
customers and consumers better than anyone else. Visit
www.energizerholdings.com for more details.
This document contains both historical and forward-looking
statements. Forward-looking statements are not based on historical
facts but instead reflect our expectations, estimates or
projections concerning future results or events, including, without
limitation, the future sales, gross margins, costs, earnings, cash
flows, tax rates and performance of the Company, as well as matters
related to the Company's entrance into the ASR program, including
statements about the expected completion date of the ASR program,
the number of shares that will be delivered to the Company under
the ASR program and the Company's financial capacity to sustain its
capital allocation initiatives. These statements generally can be
identified by the use of forward-looking words or phrases such as
"believe," "expect," "expectation," "anticipate," "may," "could,"
"intend," "belief," "estimate," "plan," "target," "predict,"
"likely," "should," "forecast," "outlook," or other similar words
or phrases. These statements are not guarantees of performance and
are inherently subject to known and unknown risks, uncertainties
and assumptions that are difficult to predict and could cause our
actual results to differ materially from those indicated by those
statements. We cannot assure you that any of our expectations,
estimates or projections will be achieved. The forward-looking
statements included in this document are only made as of the date
of this document and we disclaim any obligation to publicly update
any forward-looking statement to reflect subsequent events or
circumstances. Numerous factors could cause our actual results and
events to differ materially from those expressed or implied by
forward-looking statements, including, that we cannot guarantee
that the ASR program, or any future share repurchases, will enhance
long-term stockholder value, and share repurchases could increase
the volatility of the price of our stock and diminish our cash
reserves.
In addition, other risks and uncertainties not presently known
to us or that we consider immaterial could affect the accuracy of
any such forward-looking statements. All forward-looking statements
should be evaluated with the understanding of their inherent
uncertainty. Additional risks and uncertainties include those
detailed from time to time in our publicly filed documents,
including those described under the heading "Risk Factors" in our
Form 10-K filed with the Securities and Exchange Commission on
November 17, 2020.
(1) Includes the assumed conversion of the Company's
mandatory convertible preferred stock into approximately 4.7
million shares of common stock.
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SOURCE Energizer Holdings Inc.