CLEVELAND, Aug. 12, 2014 /PRNewswire/ -- OM Group, Inc. (NYSE: OMG) announced that its Board of Directors has approved an additional share repurchase authorization of up to $50 million of its common shares. In 2013, the Board authorized the repurchase of up to $50 million of its common shares, of which the Company has repurchased $24 million through June 30, 2014. On a combined basis under both authorizations, $76 million remains available for repurchases, with no expiration.
"We are delighted to announce the additional share repurchase authorization, which underscores our commitment to shareholder value creation," said Joe Scaminace, Chairman and Chief Executive Officer of OM Group, Inc. "The additional authorization reflects our confidence in the long-term intrinsic value of the Company and its cash flow generation capabilities, and we believe that our shares represent an attractive investment opportunity. Our strategy includes a balanced approach of investing in our businesses, pursuing complementary acquisitions and returning capital to shareholders. We are confident that this strategy will deliver long-term value for our shareholders."
The Company may utilize various methods to effect the repurchases, which may include open market repurchases, negotiated block transactions, accelerated share repurchases or open market solicitations for shares, some of which may be effected through 10b5-1 Plans. Any repurchases would be funded from cash on hand or borrowings under the Company's credit facility. The timing of repurchases will depend on several factors including market and business conditions, and the repurchases may be discontinued at any time. The total remaining authorization of $76 million represents approximately 10% of the Company's current outstanding common shares based on yesterday's closing price.
OM Group also announced that its Board of Directors declared a quarterly cash dividend of $0.075 per share, payable on September 5, 2014, to stockholders of record as of August 22, 2014.
About OM Group
OM Group is a technology-driven diversified industrial company serving attractive global markets, including automotive systems, electronic devices, aerospace, industrial and renewable energy. Its business platforms use innovation and technology to address customers' complex applications and demanding requirements. For more information, visit the Company's website at www.omgi.com.
The foregoing discussion may include forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon specific assumptions and are subject to uncertainties and factors relating to the company's operations and business environment, all of which are difficult to predict and many of which are beyond the control of the company. These uncertainties and factors could cause actual results of the company to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. Such uncertainties and factors include: uncertainty in worldwide economic conditions; technological changes in our industry or in our customers' products; uncertainty with respect to U.S. Government spending levels or priorities; our ability to identify, complete and integrate acquisitions aligned with our strategy; failure to retain and recruit key personnel; the majority of our operations are outside the United States, which subjects us to risks that may adversely affect our operating results; fluctuations in the price and uncertainties in the supply of rare earth materials and other raw materials; costs incurred in connection with cost optimization plans and our ability to realize anticipated savings; level of returns on pension plan assets and changes in the actuarial assumptions; insurance that we maintain may not fully cover all potential exposures; changes in effective tax rates or adverse outcomes resulting from tax examinations; unanticipated costs of environmental regulation, including changes that could affect sales of our products; failure to maintain sufficient cash in the U.S.; failure to protect or enforce our intellectual property rights; disruptions in relationships with key customers or any material adverse change in their business; possible future indebtedness that may impair our ability to operate our business successfully; extended business interruption at our facilities; the timing and amount of common share repurchases, if any; fluctuations in foreign exchange rates; successful execution of the GTL supply agreement signed in connection with the Advanced Materials sale; and the risk factors set forth in Part 1, Item 1a of our Annual Report on Form 10-K for the year ended December 31, 2013.
SOURCE OM Group, Inc.