Snap-on Incorporated Announces $500 Million Share Repurchase Authorization
KENOSHA, Wis. - (BUSINESS WIRE) - August 7, 2017 - Snap-on Incorporated (NYSE: SNA), a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks, today announced that its board of directors has authorized a share repurchase program of up to $500 million of common stock that replaces two previously approved share repurchase programs under which approximately $116 million of authorization remained. A third previously approved share repurchase program, which allows the repurchase of up to the number of shares issued under the company’s various equity plans, remains in place. Including the new authorization, total share repurchase availability currently stands at approximately $501 million.
“This new share repurchase program reinforces our commitment to create long-term value for our shareholders and our belief that Snap-on is well-positioned for the future,” said Nick Pinchuk, Snap-on chairman and chief executive officer. “We’re encouraged that our strong financial position and cash generation enable us to return capital to our shareholders, along with our long-standing dividend, through a more substantial share buyback program. At the same time, our priorities for capital allocation include continuing to strategically invest, both organically and through acquisitions, along our defined runways for growth and improvement.”
Shares may be repurchased from time to time in the open market or through privately negotiated transactions, subject to applicable laws and regulations. The company intends to fund repurchases through a combination of available cash and debt.
Snap-on Incorporated is a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks. Products and services include hand and power tools, tool storage, diagnostics software, information and management systems, shop equipment and other solutions for vehicle dealerships and repair centers, as well as for customers in industries, including aviation and aerospace, agriculture, construction, government and military, mining, natural resources, power generation and technical education. Snap-on also derives income from various financing programs to facilitate the sales of its products and support its franchise business. Products and services are sold through the company’s franchisee, company-direct, distributor and internet channels. Founded in 1920, Snap-on is a $3.4 billion, S&P 500 company headquartered in Kenosha, Wisconsin.
Statements in this news release that are not historical facts, including statements that (i) are in the future tense; (ii) include the words “expects,” “anticipates,” “intends,” “approximates,” or similar words that reference Snap-on or its management; (iii) are specifically identified as forward-looking; or (iv) describe Snap-on’s or management’s future outlook, plans, estimates, objectives or goals, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Snap-on cautions the reader that this news release may contain statements, including earnings projections, that are forward-looking in nature and were developed by management in good faith and, accordingly, are subject to risks and uncertainties regarding Snap-on’s expected results that could cause (and in some cases have caused) actual results to differ materially from those described or contemplated in any forward-looking statement. In particular, Snap-on cannot provide assurances regarding any particular market reaction to share repurchases, or related effects on the value of its shares, because that reaction is not under the company’s control and is subject to changes in the market unrelated to Snap-on; nor can Snap-on provide any assurances regarding its ability to repurchase shares on acceptable terms. Market conditions may also affect whether the repurchases are in fact accretive. Additional factors that may cause the company’s actual results to differ materially from those contained in the forward-looking statements include those found in the company’s reports filed with the Securities and Exchange Commission, including the information under the “Safe Harbor” and “Risk Factors” headings in its Annual Report on Form 10-K for the fiscal year ended December 31, 2016, which are incorporated herein by reference. Snap-on disclaims any responsibility to update any forward-looking statement provided in this news release, except as required by law.
For additional information, please visit www.snapon.com.
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SOURCE Snap-on Incorporated