- Oops!Something went wrong.Please try again later.
Board of Directors increases share repurchase authorization by $2.5 billion
KINGSPORT, Tenn., December 07, 2021--(BUSINESS WIRE)--Eastman Chemical Company (NYSE:EMN) today announced that it has entered into an accelerated share repurchase (ASR) agreement with Barclays Bank PLC and Royal Bank of Canada to repurchase $500 million of Eastman’s common stock. The ASR is in addition to previously planned repurchases, and the company is now targeting $1 billion of repurchases in 2021.
Eastman also announced that its Board of Directors has increased the Company’s share repurchase authorization by $2.5 billion.
ASR repurchases will be under the previous February 2018 $2 billion Board share repurchases authorization. Upon completion of the ASR, Eastman will have authorization to repurchase another approximately $2.85 billion of shares.
Senior Vice President and Chief Financial Officer Willie McLain said, "This accelerated share repurchase and the Board’s additional share repurchase authorization demonstrate our confidence in Eastman’s growth strategy and our commitment to delivering value to our stockholders."
Eastman expects approximately 80% of the share repurchases under the ASR agreement (3.7 million shares) on December 8, 2021, based on the company’s closing price of $109.34 on December 6, 2021. The ASR repurchases are expected to be completed in the first quarter of 2022, with the total number of repurchased shares based on Eastman’s volume-weighted average price during the term of the agreement, less a discount.
Share repurchases under the share repurchase authorization will be implemented through purchases made from time to time in either or both open market or private transactions. The timing, volume, and nature of share repurchases will be at the discretion of management, depending on market conditions, applicable securities laws, and other factors, and may be suspended or discontinued at any time. Eastman may also implement all or part of the repurchases under one or more Rule 10b5-1 trading plans, which would allow repurchases under pre-set terms at times when Eastman might otherwise be prevented from doing so under insider trading laws or because of self-imposed trading restrictions.
Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company's innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end-markets such as transportation, building and construction, and consumables. As a globally inclusive and diverse company, Eastman employs approximately 14,000 people around the world and serves customers in more than 100 countries. The company had 2020 revenues of approximately $8.5 billion and is headquartered in Kingsport, Tennessee, USA. For more information, visit www.eastman.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20211206005869/en/
Media: Tracy Kilgore Addington
423-224-0498 / email@example.com
Investors: Greg Riddle
212-835-1620 / firstname.lastname@example.org