Cobb Reporter

BlueLinx issued the following announcement on May 3. 

BlueLinx Holdings Inc. (NYSE: BXC) (“the company”), a leading U.S. wholesale distributor of building products, announced today that its Board of Directors increased the company’s share repurchase authorization to $100 million, up $75 million from the previous authorization, and that it entered into an Accelerated Share Repurchase Agreement (“ASR”) with Jefferies LLC (“Jefferies”) to repurchase $60 million of the company’s common stock under the $100 million share repurchase authorization.

“These actions demonstrate our confidence in our long-term strategy, continued improvement in our execution and commitment to delivering shareholder value through disciplined capital allocation,” said Dwight Gibson, President and Chief Executive Officer. “Based on our comprehensive analysis, we believe the expected future cash generation profile of our business, even in a slower growth environment, is significantly undervalued and that repurchasing shares of BlueLinx is a compelling and attractive investment.”

Under the ASR agreement the company will make an initial payment of $60 million with an initial delivery of 553,584 shares of the company’s common stock based on BlueLinx’s closing price on May 2, 2022. The final number of shares repurchased under the ASR will be based on the average of the volume-weighted price of BlueLinx’s common stock during the term of the transaction and will be subject to adjustments related to the terms and conditions of the ASR agreement. The ASR is expected to be completed in the second half of 2022.

Under its amended $100 million share repurchase authorization, the company may repurchase its common stock at any time or from time to time, without prior notice, subject to prevailing market conditions and other considerations. The amended repurchase authorization expires at the end of fiscal 2023. Through the end of the fiscal first quarter of 2022, the company repurchased 81,331 shares of its common stock in open market purchases under the program for a total of $6.4 million.

Original source can be found here.