Armstrong World (AWI) Announces $150M Accelerated Buyback

Armstrong World Industries, Inc. (NYSE: AWI) today announced that it has entered into a $150 million accelerated share repurchase agreement with Deutsche Bank AG.

The accelerated share repurchase agreement was entered into pursuant to the Company's previously announced expansion of its share repurchase authorization from $400 million to $700 million. The transaction is being funded with proceeds from the Company’s previously announced sale of certain subsidiaries comprising its businesses in Europe, the Middle East and Africa (including Russia) and the Pacific Rim to Knauf International GmbH.

After giving effect to the accelerated share repurchase program, approximately $325 million remains authorized under the Company’s share repurchase authorization for future repurchases. The Company’s share repurchase program duration is unchanged and expires on October 31, 2020.

Vic Grizzle, AWI President and CEO, said, "This transaction and the expanded share repurchase authorization, reflect our commitment to return a majority of the net cash proceeds from the sale of our international businesses to shareholders, as well as our Board’s confidence in our strategic plan and our continued ability to generate significant free cash flow."

Pursuant to the terms of the accelerated share repurchase agreement, the Company will pay Deutsche Bank AG $150 million in cash and will initially receive approximately 1.8 million shares of the Company’s common stock. The total number of shares of the Company’s common stock to be repurchased under the accelerated share repurchase agreement will be based on the average of the daily volume-weighted average prices of the Company’s common stock during the term of the transaction, less an agreed discount and subject to potential adjustments pursuant to the terms and conditions of the accelerated share repurchase agreement. The final settlement of the transaction under the accelerated share repurchase agreement is expected to occur no later than December 2018.

You May Also Be Interested In

• Deutsche Bank Downgrades Workday (WDAY) to Hold
• uCloudLink authorizes $2 million share repurchase program through 2027
• Swiss Water gets TSX nod to buy back up to 650,000 shares