Ferguson PLC Announces Share Repurchase Program

Rhea-AI Summary

Ferguson plc announced a continuation of its $2.5 billion share repurchase program through an arrangement with Barclays, starting March 15, 2023, and concluding by June 15, 2023. The current tranche allocates £160 million, with total repurchases not exceeding $2.5 billion. Shareholder authority permits up to 20,845,062 shares to be bought back. The initiative aims to reduce the company's capital and potentially fulfill future share awards. Repurchases will occur on the London and New York Stock Exchanges, complying with relevant regulations.

Positive

• Continuation of a $2.5 billion share repurchase program shows confidence in financial health.
• Allocation of £160 million for current share buyback may enhance shareholder value.
• Potential use of repurchased shares for fulfilling future share awards demonstrates prudent financial management.

Negative

• None.

Share repurchase program

WOKINGHAM, UK / ACCESSWIRE / March 15, 2023 / Ferguson plc (the "Company") announces that, in continuation of its $2.5 billion share repurchase program (the "Program"), it has entered into an irrevocable and non-discretionary arrangement with its brokers Barclays Capital Securities Limited and Barclays Capital Inc. (together, "Barclays") commencing from March 15, 2023 and ending no later than June 15, 2023. Under this arrangement, Barclays, an independent third party, will act as principal and will make decisions under the program independently from the Company.

The maximum pecuniary amount allocated to this tranche of the Program is £160 million. The value of shares repurchased by the Company under the Program pursuant to the various arrangements entered into with its brokers will not, in aggregate, exceed US$2,500 million.

The Company's shareholders generally authorized the Company to purchase up to a maximum of 20,845,062 of its ordinary shares at its Annual General Meeting held on November 30, 2022. Pursuant to such authority, the Company intends to continue purchasing shares under the Program. The aggregate number of shares acquired under such authority by the Company pursuant to the Program shall not exceed the maximum number of shares which the Company is authorized to purchase pursuant to such general authority. It is intended that any shares repurchased under the Program will be transferred into treasury.

The purpose of the Program is to reduce the capital of the Company. To the extent required, the Company may in the future use the repurchased shares to satisfy share awards. Any purchases of shares by the Company in relation to this tranche of the Program will be carried out on the London Stock Exchange and/or the New York Stock Exchange (in accordance with the terms of the arrangement entered into with Barclays) and in accordance with (and subject to the limits prescribed by) the Company's general authority to repurchase shares granted by its shareholders, the Market Abuse Regulation 596/2014 (as it forms part of UK law pursuant to the European Union (Withdrawal) Act 2018), Rule 10b5-1 and Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended.

For further information please contact

Ferguson plc
Brian Lantz, Vice President IR and Communications	Mobile:	+1 224 285 2410
Pete Kennedy, Director of Investor Relations	Mobile:	+1 757 603 0111
Media Inquiries
John Pappas, Director of Financial Communications	Mobile	+1 484 790 2727

About Ferguson plc

Ferguson plc (NYSE:FERG)(LSE:FERG) is a leading value-added distributor in North America providing expertise, solutions and products from infrastructure, plumbing and appliances to HVAC, fire, fabrication and more. We exist to make our customers' complex projects simple, successful and sustainable. Ferguson is headquartered in the U.K., with its operations and associates solely focused on North America and managed from Newport News, Virginia. For more information, please visit http://www.corporate.ferguson.com or follow us on LinkedIn https://www.linkedin.com/company/ferguson-enterprises.

Cautionary note regarding forward-looking statements

Certain information in this announcement is forward-looking within the meaning of the United States Private Securities Litigation Reform Act of 1995, including with relation to our share repurchase program and its purpose and timetable. Forward-looking statements cover all matters which are not historical facts and speak only as of the date on which they are made. Forward-looking statements can be identified by the use of forward-looking terminology such as "will," "intend," or other variations or comparable terminology. Many factors could cause actual results to differ materially from those in such forward-looking statements, including, but not limited to: risks associated with the relocation of our primary listing to the US and any volatility in our share price and shareholder base in connection therewith; weakness in the economy, market trends, uncertainty and other conditions in the markets in which we operate, and other factors beyond our control, including any macroeconomic or other consequences of the current conflict in Ukraine; failure to rapidly identify or effectively respond to direct and/or end customers' wants, expectations or trends, including costs and potential problems associated with new or upgraded information technology systems; adverse impacts caused by the COVID-19 pandemic (or related variants); unsuccessful execution of our operational strategies; and the risks and uncertainties set forth under the heading "Risk Factors" in our Form 10-K filed with the Securities and Exchange Commission ("SEC") on September 27, 2022 and in our Form 10-Q filed with the SEC on March 8, 2023, and in other documents we furnish to or file with the SEC in the future. Forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with our legal or regulatory obligations we undertake no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Ferguson PLC

View source version on accesswire.com:
https://www.accesswire.com/743813/Ferguson-PLC-Announces-Share-Repurchase-Program

FAQ

What is the purpose of Ferguson plc's $2.5 billion share repurchase program?

The purpose is to reduce the capital of the Company and potentially satisfy future share awards.

How much is allocated for the current tranche of Ferguson's share repurchase program?

The current tranche allocates £160 million for share repurchases.

When does Ferguson plc's share repurchase program commence and conclude?

The program commenced on March 15, 2023, and will end no later than June 15, 2023.

How many shares is Ferguson plc authorized to repurchase?

Ferguson plc is authorized to repurchase up to 20,845,062 of its ordinary shares.

Where will Ferguson plc conduct its share repurchases?

Share repurchases will be conducted on the London Stock Exchange and the New York Stock Exchange.