Encore Wire Corporation (NASDAQ Global Select: WIRE) today announced that the Company repurchased 2,774,250 shares of its Common Stock from Capital Southwest Venture Corporation, representing all of the shares held by Capital Southwest Venture Corporation, pursuant to the Company’s previously approved stock purchase program. Capital Southwest Corporation, an affiliate of Capital Southwest Venture Corporation, continues to hold 1,312,500 shares of the Company’s Common Stock.
Under the terms of the transaction, the Company purchased 2,774,250 shares of its Common Stock owned by Capital Southwest Venture Corporation which represent approximately 11.8% of the outstanding shares of the Company. The aggregate purchase price was $66,637,485, based on a price of $24.02 per share, equal to a four cent discount to the closing price of the Company’s Common Stock on The Nasdaq Global Select Market on May 9, 2012.
The Company funded the repurchase with its available cash on its balance sheet rather than borrowings under its credit agreement. At March 31, 2012, the Company had cash and cash equivalents of $83.9 million. After the repurchase, the Company will have cash and cash equivalents of approximately $16.5 million. On May 11, 2012, the Board of Directors of the Company authorized the repurchase of up to 4 million shares of its Common Stock under the previously approved stock repurchase program of the Company. After the repurchase of shares from Capital Southwest Venture Corporation, 1,225,750 shares of the Company’s outstanding Common Stock remain available for repurchase under the Company’s stock purchase plan. After the repurchase, the Company has approximately 20,654,752 shares of Common Stock outstanding.
Encore Wire Corporation manufactures a broad range of copper electrical wire for interior wiring in homes, apartments, manufactured housing and commercial and industrial buildings.The matters discussed in this news release, other than the historical financial information, including statements about the copper pricing environment, profitability and stockholder value, may include forward-looking statements that involve risks and uncertainties, including payment of future dividends, future purchases of stock, fluctuations in the price of copper and other raw materials, the impact of competitive pricing and other risks detailed from time to time in the Company’s reports filed with the Securities and Exchange Commission. Actual results may vary materially from those anticipated.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts