AUSTIN, Minn., Sept. 29 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL) announced today that its Board of Directors has authorized a repurchase of up to five million shares of its common stock. A purchase of the full amount would equal 6.8 percent of the 73,614,546 shares issued. The repurchase of Hormel Foods Corporation common stock will be accomplished through periodic purchases at prevailing prices on the open market, by block purchases or in privately negotiated transactions. The repurchased shares may be retained as treasury stock for use for corporate purposes, or may be retired. The company intends to use surplus cash to fund the repurchase program. This new repurchase program comes on the heels of the completion of Hormel Foods Corporation's initial five million share repurchase program which was authorized on March 25, 1996, and completed on July 23, 1998. Joel W. Johnson, chairman of the board, president and chief executive officer said, "We believe a share repurchase program is in the best interests of our shareholders. Given our company's continuing strong cash position and strong balance sheet, the Board determined that investing some of the cash in our own stock continues to be the best way to deliver increased value to our shareholders." Hormel Foods Corporation, headquartered in Austin, Minn., is a multinational manufacturer, marketer and distributor of many of the industry's best-known, consumer-branded meat and food products.
SOURCE Hormel Foods