Reece has announced a new on-market share buyback program of up to $35 million. This follows the completion of its $365 million off-market buyback, which concluded in October. The company stated that this additional buyback represents the upper limit of its previously communicated capital management strategy. Reece is a leading distributor of plumbing, waterworks, and HVAC-R products to commercial and residential customers. With roots dating back to 1920, the company operates branches across Australia, New Zealand and the United States.
Chairman Peter Wilson assured investors that Reece would maintain a “strong balance sheet with a conservative leverage ratio” to ensure the company’s capacity to support future growth initiatives. The buyback will be funded using a combination of existing cash reserves and available debt facilities.
The buyback program is set to commence on or after December 12 and may continue for a period of up to 12 months. The volume and timing of share purchases will be subject to prevailing market conditions and the company’s share price.
Reece has the discretion to vary, suspend, or terminate the buyback program at any time. Investors are advised that there is no guarantee as to the exact number of shares that will be repurchased or the precise duration of the buyback initiative.
