The Beauty Health Company has announced that its board of directors have authorized a share repurchase program of up to $200 million of the company’s outstanding common stock.
In addition, The Beauty Health Company has entered into an accelerated share repurchase agreement (“ASR”) with JPMorgan Chase Bank, N.A., to repurchase $100 million of the company’s common stock.
Upon completion of the ASR, the company will have authorization to repurchase an additional $100 million of shares of common stock.
Under the ASR, the company will make a payment of $100 million and will receive an initial delivery of approximately 7.7 million shares of the company’s common stock on September 29, 2022.
The Beauty Health Company expects to fund the repurchase with cash on-hand. The final number of shares to be repurchased will be based on the average of the daily volume-weighted average price of the company’s common stock during the term of the ASR, less a discount and subject to adjustments pursuant to terms of the ASR.
The final settlement of the ASR is expected to occur during the first quarter of 2023.
BeautyHealth president and CEO Andrew Stanleick said, “In alignment with the board of directors, we believe that BeautyHealth stock is trading at levels that make a repurchase prudent at this time. This buyback demonstrates our conviction in the long-term strategy and growth outlook of BeautyHealth. We are committed to creating value for shareholders through disciplined capital allocation, and we remain in a strong cash position to pursue M&A.”