Stoneridge Inc., a supplier of highly engineered electrical and electronic components for the commercial vehicle and automotive industry, has entered into an accelerated share repurchase agreement with Citibank N.A. to repurchase an aggregate of $50 million of Stoneridge’s common shares. The company said this reflects its strong balance sheet and free cash flow generation.
The agreement was entered pursuant to the company’s previously announced $50 million share repurchase program on Oct. 28, 2018.
Stoneridge will initially receive approximately 1.35 million common shares. The final number of shares to be repurchased will be based on the volume-weighted average price of Stoneridge’s common shares during the term of the transaction, less a discount and subject to adjustments pursuant to the terms and conditions of the share repurchase agreements.
“This share repurchase demonstrates our confidence in the long-term growth of our business, and a continued commitment to create and deliver value to our shareholders,” said Bob Krakowiak, executive vice president and chief financial officer.