REV Group Inc. announced that its board of directors has approved the authorization of a share repurchase program.
According to a press release, the authorization allows the repurchase of up to $50 million of the company’s outstanding common stock, effective immediately. The repurchase authorization expires in 24 months and gives management the flexibility to determine conditions under which shares may be purchased.
“The board’s share repurchase authorization reflects confidence in our company’s long-term performance and position in our marketplace, as well as our commitment to returning value to shareholders,” said Tim Sullivan, REV Group president and CEO. “This repurchase authorization allows us the flexibility to opportunistically acquire shares when attractive opportunities arise, and we believe our current share price represents a compelling investment opportunity and prudent use of existing liquidity. We will remain committed to a disciplined capital deployment strategy to drive value for our shareholders through strategic acquisitions, dividends and share repurchases.”
The company’s share repurchase authorization permits REV to purchase shares through a variety of methods, including in the open market or through privately negotiated transactions, in accordance with applicable securities laws. The authorization will be funded using the company’s existing cash, cash equivalents, marketable securities, and future cash flows, or through the incurrence of short- or long-term indebtedness, at management’s discretion.