Source: Business Wire
Summary
Kontoor Brands has completed the divestiture of its Lee business. The company plans to use the expected proceeds for a $400 million Accelerated Share Repurchase agreement.
Our Reading
The trend returns with a new name.
Share repurchase agreements are not new, but Kontoor’s move signals a familiar strategy. The company’s decision to allocate funds to this agreement indicates a focus on shareholder value. Kontoor’s approach is reminiscent of similar moves in the industry. The use of proceeds for share repurchase is a tried approach. The cycle of investing in shareholder value continues.
Author: Evan Null
