Eastman Chemical Company (NYSE:EMN) today announced that it has entered into an accelerated share repurchase (ASR) agreement with Wells Fargo, NA and Mizuho Markets Americas LLC to repurchase $500 million of Eastman's common stock. With the execution of the ASR, Eastman will have made significant progress towards its target of repurchasing greater than $1 billion of shares in 2022, with approximately $750 million completed in the second quarter.
ASR repurchases will be under the remainder of the February 2018 $2 billion Board of Directors share repurchase authorization as well as the December 2021 Board $2.5 billion share repurchase authorization. Upon completion of the ASR, Eastman will have authorization to repurchase another approximately $2.12 billion of shares.
Senior Vice President and Chief Financial Officer Willie McLain said, "This accelerated share repurchase demonstrates our confidence in our company's market value and our commitment to continue delivering value to our stockholders through share repurchases."
Eastman expects approximately 80% of the share repurchases under the ASR agreement (3.8 million shares) on May 9, 2022, based on the company's closing price of $105.67 on May 5, 2022. The ASR repurchases are expected to be completed by third quarter 2022, with the total number of repurchased shares based on Eastman's volume-weighted average price during the term of the agreement, less a discount.
Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company's innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end markets such as transportation, building and construction, and consumables. As a globally inclusive and diverse company, Eastman employs approximately 14,000 people around the world and serves customers in more than 100 countries. The company had 2021 revenues of approximately $10.5 billion and is headquartered in Kingsport, Tennessee, USA. For more information, visit www.eastman.com.