Fortune Brands Announces Additional $400 Million Share Repurchase Authorization and Declares Quarterly Dividend

Rhea-AI Summary

Fortune Brands Home & Security (FBHS) announced a $400 million share repurchase authorization over the next two years, supplementing the existing $306 million from a prior plan. The repurchases will take place based on market conditions, and there's no obligation to buy any specific amount. The new authorization is valid until July 23, 2023. Additionally, the Board declared a quarterly cash dividend of $0.26 per share, payable on September 15, 2021, to shareholders on record by August 27, 2021. This proactive capital management reflects confidence in the company's growth and commitment to shareholder value.

Positive

• Authorization of $400 million share repurchase boosts shareholder value.
• Continued commitment to return capital through dividends, with a quarterly dividend of $0.26 per share.
• Supplementing the existing $306 million demonstrates confidence in cash flow and financial health.

Negative

• None.

Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading home and security products company, today announced that its Board of Directors authorized the repurchase of up to $400 million of shares of the Company’s common stock over the next two years on the open market or in privately negotiated transactions in accordance with applicable securities laws.

The $400 million share repurchase authorization announced today is in addition to the $306 million remaining from a prior authorization which expires on September 21, 2022.

The new purchases, if made, will occur from time to time depending on market conditions. The newly announced share repurchase authorization does not obligate the Company to repurchase any dollar amount or number of shares of common stock. This authorization is in effect until July 23, 2023, and may be suspended or discontinued at any time.

Additionally, on July 23, 2021, the Board declared a quarterly cash dividend of $0.26 per common share. The dividend is payable on September 15, 2021, to stockholders of record as of the close of business on August 27, 2021.

About Fortune Brands
Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in Deerfield, IL., is a Fortune 500 company, part of the S&P 500 Index and a leader in the home products industry. With trusted brands and market leadership positions in each of its three operating segments, Plumbing, Outdoors & Security, and Cabinets, Fortune Brands’ 27,500 associates work with a purpose to fulfill the dreams of home.

The Company’s growing portfolio of complementary businesses and innovative brands include Moen and the House of Rohl within the Global Plumbing Group; outdoor living and security products from Therma-Tru, LARSON, Fiberon, Master Lock and SentrySafe; and MasterBrand Cabinets’ wide-ranging offerings from Mantra, Diamond, Omega and many more. Visit www.FBHS.com to learn more about FBHS, its brands and how the Company is accelerating its environmental, social and governance (ESG) commitments.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains certain “forward-looking statements” regarding general business strategies, market potential, future financial performance, the potential of our brands and the housing market, and other matters. Statements preceded by, followed by or that otherwise include the words “believes”, “positioned”, “expects”, “estimates”, “plans”, “look to”, “outlook”, and similar expressions or future or conditional verbs such as “will”, “should”, “would”, “may” and “could” are generally forward-looking in nature and not historical facts. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations of our management. Although we believe that these statements are based on reasonable assumptions, they are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those indicated in such statements. Important factors that could affect performance and cause results to differ materially from management’s expectations, or could affect the Company’s ability to achieve its strategic goals, include the uncertainties relating to the impact of COVID-19 on the Company’s business, operations and employees and the other factors discussed in our securities filings, including in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission. The forward-looking statements included in this release are made as of the date hereof, and except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect events, new information or circumstances occurring after the date of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210726005413/en/

FAQ

What is the purpose of Fortune Brands' $400 million share repurchase authorization?

The $400 million share repurchase authorization aims to enhance shareholder value and shows the company's confidence in its financial health.

How long is the new share repurchase authorization valid for FBHS?

The new share repurchase authorization is valid until July 23, 2023.

What is the amount of the dividend declared by Fortune Brands?

Fortune Brands declared a quarterly dividend of $0.26 per common share.

When will the dividend be paid to shareholders?

The dividend will be payable on September 15, 2021, to stockholders of record as of August 27, 2021.