DEERFIELD, Ill. -- Fortune Brands Home & Security, Inc. (NYSE: FBHS), an industry-leading home and security products company, today announced its Board of Directors has authorized the repurchase of up to $250 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 purchases, if made, will occur from time to time depending on market conditions.
Fortune Brands continues to act on its strategy for utilizing free cash flow and the balance sheet to drive incremental shareholder value, as evidenced by the approximately $1 billion deployed over the last seven quarters that enabled the Company to:
Complete acquisitions of Sentry Safe and WoodCrafters, totaling $417 million.
Opportunistically repurchase $463 million in Company shares.
Initiate a $0.10 quarterly dividend and increase the dividend to $0.12.
With approximately $78 million remaining under the prior share repurchase authorizations, this new limited share repurchase authorization represents the Board's continued confidence in the Company's long-term cash flow potential.
"We have deployed approximately $1 billion over the last seven quarters, but we estimate that an even greater amount can be deployed from this point forward as the housing market continues to recover to a steady state," said Chris Klein, chief executive officer, Fortune Brands.
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 September 30, 2016, and may be suspended or discontinued at any time.
About Fortune Brands
Fortune Brands Home & Security, Inc. (NYSE: FBHS), headquartered in Deerfield, Ill., creates products and services that help fulfill the dreams of homeowners and help people feel more secure. The Company's trusted brands include MasterBrand cabinets, Moen faucets, Therma-Tru entry door systems, and Master Lock and Sentry Safe security products. Fortune Brands holds market leadership positions in all of its segments. Fortune Brands is part of the S&P MidCap 400 Index. For more information, please visit www.FBHS.com.
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