Reece Australia, a leading supplier of plumbing and bathroom products, has announced a $250 million off-market share buyback. The company said the buyback is due to its strong balance sheet and excess capacity. Reece supplies plumbing, bathroom, air conditioning, refrigeration, and drainage products to commercial and residential customers. The company operates predominantly in Australia, New Zealand and the United States.
Executive Chairman Peter Wilson commented on the buyback, noting that while the near-term outlook presents challenges, the company remains optimistic about its long-term prospects. Wilson also indicated that, depending on the outcome of the current buyback, Reece may consider further capital management options, including a potential on-market buyback in the future.
The buyback will be conducted at a price between $11 and $13 per share. The offer period is scheduled to commence on September 29 and conclude on October 17. Shareholders will have the opportunity to participate within this timeframe, subject to the terms and conditions of the buyback offer. Reece has not elaborated on the specific number of shares targeted for repurchase at this time, as it will depend on the level of shareholder participation and the final buyback price.
