Tupperware announced that it has entered into an agreement to repurchase an aggregate of $75 million of its common stock in an accelerated share repurchase program with Wells Fargo Bank.
This amounts to approximately 4.6 million shares and represents approximately 8.7% of Tupperware’s outstanding shares. Tupperware expects to fund this repurchase program with available cash on hand and revolver borrowings. Tupperware will repurchase shares as part of its existing $250 million share repurchase authorization, which was approved by its Board of Directors in June 2021.
Sandra Harris, Chief Financial and Operations Officer of Tupperware said, “Our strong balance sheet and compelling free cash flow generation enable investments in our growth initiatives as well as capital returns, and this transaction underscores our commitment to delivering value to our shareholders.”
Under the terms of the agreement, Tupperware will make an initial payment of $75 million to Wells Fargo and receive an initial delivery of approximately 3.4 million shares of Tupperware’s common stock. The final settlement of the repurchase program is expected to be completed before the end of the second calendar quarter of 2022.