Cooper-Standard Holdings has approved a securities repurchase programme, authorising the company to repurchase, in the aggregate, up to US$125m of its outstanding common stock or warrants to purchase common stock.
The authorisation replaces the remaining balance of a previous $50m repurchase program authorised in May 2013 pursuant to which the company has repurchased approximately 198,990 shares at a total cost (including fees) of $9,815,435. Of the $125m program, the company will use up to $25m to purchase a portion of the shares being offered by certain selling stockholders in connection with a proposed offering of the company's common stock announced today.
Under the programme, repurchases may be made on the open market or through private transactions, as determined by the company's management and in accordance with prevailing market conditions and Securities and Exchange Commission requirements. The company expects to fund all repurchases from cash on hand and future cash flows from operations. It is not obligated to acquire a particular number of securities, and the programme may be discontinued at any time.
"We believe that our strategy has generated strong free cash flow and operating improvements," stated Jeffrey Edwards, chairman and CEO of Cooper Standard. "The stock repurchase programme that was announced today demonstrates our commitment to creating stockholder value over the long term."
Cooper Standard, headquartered in Novi, Michigan, is a leading global supplier of systems and components for the automotive industry. Products include rubber and plastic sealing, fuel and brake lines, fluid transfer hoses and anti-vibration systems. The supplier employs more than 29,000 people globally and operates in 20 countries around the world.
