Feltham, England-headquartered Nomad Foods Limited has approved a new share repurchase authorization of up to $300 million which, based on the March 12 closing price of $15.58 per share on the New York Stock Exchange, represents approximately 9% of the frozen food company’s market capitalization. Acquisitions pursuant to the stock repurchase program may be made from time to time through a combination of open market repurchases, privately negotiated transactions, accelerated share repurchase transactions, and/or other derivative transactions, at the company’s discretion, as permitted by securities laws and other legal requirements.
Noam Gottesman, Nomad Foods’ co-chairman and founder, commented: “Recent market dislocations have presented a unique opportunity for us to deploy available capital to generate compelling and accretive returns for our shareholders. This authorization reflects the board of director’s confidence in the health, growth prospects and free cash flow profile of our business.”
He added: Importantly, this announcement does not preclude us from pursuing our M&A agenda. We remain actively engaged on several potential transactions and believe we have the financial capacity to both repurchase shares and acquire attractive food businesses while maintaining a prudent leverage profile.”
In connection with the share repurchase program, the company may enter into Rule 10b5-1 trading plans, which would generally permit the repurchase of shares at times when it might otherwise be prevented from doing so under certain securities laws. There can be no assurance as to the amount, timing or prices of repurchases, if any. The specific timing and amount of repurchases will vary based on market conditions and other factors. The share repurchase program may be modified, extended or terminated by the board of directors at any time.
About Nomad Foods
Nomad Foods’ portfolio of brands sold at retail stores in the United Kingdom and 13 countries across continental Europe include Birds Eye, Findus, Iglo, Aunt Bessie’s and Goodfella’s. In 2019 it generated a 7% increase in revenues to €2,324 million. Profit, however, declined 10% to £154 million for the year.