Directors of Nomad Foods, parent company of Iglo, Birds Eye and Findus brands, have approved a $300 million (€270.5 million) share buyback worth around 9 percent of the company’s market capitalization.
Nomad will carry out the buyback based on Thursday’s closing price of $15.58 (€14.04).
The move was not entirely unexpected. Last year, Nomad CEO Stefan Descheemaeker told analysts the company wouldn't rule out such a buyback. At the time, the company had compiled a cash mountain of €750 million ($831.5 million).
“Recent market dislocations have presented a unique opportunity for us to deploy available capital to generate compelling and accretive returns for our shareholders," Nomad Foods’ co-chairman and founder said.
"This authorization reflects the board’s confidence in the health, growth prospects and free cash flow profile of our business."