MILWAUKEE--(BUSINESS WIRE)--Rexnord Corporation (NYSE: RXN) today announced that its Board of Directors has authorized the Company to repurchase up to $200 million of the Company’s common stock. The repurchases may be made in open market purchases, privately-negotiated transactions or in such other manner deemed appropriate by management. The repurchase program does not require the Company to acquire any particular amount of common stock and does not specify the timing of purchases or the prices to be paid. The Company expects the repurchase program to be funded from its operating cash flow.
Todd Adams, Rexnord’s President and Chief Executive Officer, said, “Our Board’s share repurchase authorization reflects the Company’s ongoing commitment to effectively allocate capital and create shareholder value. One specific objective of the repurchase plan is to offset dilution attributable to our stock-based compensation plans. Our strong cash flow enables us the flexibility to invest in internal and external growth opportunities, fund share repurchases, and continue to de-lever our capital structure.”
Headquartered in Milwaukee, Wisconsin, Rexnord is comprised of two strategic platforms, Process & Motion Control and Water Management, with approximately 7,400 employees worldwide. The Process & Motion Control platform designs, manufactures, markets and services specified, highly-engineered mechanical components used within complex systems. The Water Management platform designs, procures, manufactures and markets products that provide and enhance water quality, safety, flow control and conservation. Additional information about the Company can be found at www.rexnord.com.
Cautionary Statement on Forward-Looking Statements
Information in this release may involve outlook, expectations, beliefs, plans, intentions, strategies or other statements regarding the future, which are forward-looking statements. These forward-looking statements involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Rexnord Corporation as of the date of the release, and Rexnord Corporation assumes no obligation to update any such forward-looking statements. The statements in this release are not guarantees of future performance, and actual results could differ materially from current expectations. Numerous factors could cause or contribute to such differences. Please refer to "Risk Factors" and "Cautionary Notice Regarding Forward-Looking Statements" in the Company's Form 10-K for the fiscal year ended March 31, 2014 as well as the Company's annual, quarterly and current reports filed on Forms 10-K, 10-Q and 8-K from time to time with the Securities and Exchange Commission for a further discussion of the factors and risks associated with the business.