Watts Water Technologies, Inc. (NYSE: WTS) today announced that its Board of Directors has authorized the repurchase of up to 2,000,000 shares of the Company's Class A Common Stock from time to time on the open market or in privately negotiated transactions.
Commenting on the stock repurchase program, David J. Coghlan, Chief Executive Officer, said, "We believe, that based on current market prices, our stock is undervalued and that it is in the best interest of our shareholders for us to acquire shares in the open market to offset dilution associated with employee stock plans. We remain committed to our long-term strategy of growing the Company through acquisitions and we are comfortable that we will continue to have sufficient cash available to us to fund future acquisitions. This action reflects our ongoing commitment to improving the investment value of the Company's stock while at the same time growing our business."
The timing and amount of any shares repurchased will be determined by the Company's management based on its evaluation of market conditions and other factors. Repurchases may also be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time. Any repurchased shares will be available for use in connection with its stock plans and for other corporate purposes.
The repurchase program will be funded using the Company's available cash. As of April 1, 2012, the Company had cash, cash equivalents and investment securities of approximately $235 million.As of April 30, 2012, Watts Water Technologies, Inc. had an aggregate of 36,718,584 shares of common stock outstanding, consisting of 29,764,904 shares of Class A Common Stock and 6,953,680 shares of Class B Common Stock.
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