Acushnet Holdings Corp . (NYSE:GOLF), a leading manufacturer in the golf industry with a market capitalization of $4.45 billion, has entered into a stock repurchase agreement with Magnus Holdings Co., Ltd.
The deal, announced today, allows for the buyback of up to $62.5 million of Acushnet's common stock. According to InvestingPro analysis, the company's stock is currently trading above its Fair Value, while maintaining strong financial health with an overall score rated as "GOOD."
Under the terms of the agreement, dated December 17, 2024, the repurchase will occur on a share-for-share basis as Acushnet buys back shares from the open market or through privately negotiated transactions.
The pricing for the shares acquired from Magnus will be determined by the average price of the shares bought back by the company during a set period. This period will begin on January 2, 2025, and will run until a "determination date," which is either when the aggregate $62.5 million repurchase is reached, a mutually agreed upon date, or no later than June 30, 2025.
InvestingPro data reveals that management has been consistently aggressive with share buybacks, while maintaining a healthy current ratio of 2.1, indicating strong liquidity.
The completion of each share purchase from Magnus is subject to the condition that no material adverse events have impacted Acushnet's business or financial condition since the date of the agreement. The specific details of the agreement are outlined in Exhibit 10.1 of the Current Report on Form 8-K filed with the SEC.
This transaction is part of Acushnet's existing $1.0 billion share repurchase authorization and represents a strategic move to manage the company's capital allocation. The repurchase agreement with Magnus is a significant step in Acushnet's ongoing efforts to deliver value to its shareholders, building on its impressive 17.31% year-to-date return and eight consecutive years of dividend increases.
For deeper insights into Acushnet's financial health and future prospects, investors can access comprehensive analysis through InvestingPro's detailed research reports, available for over 1,400 US stocks.
The relationship between Acushnet and Magnus was previously disclosed in the company's Definitive Proxy Statement filed on April 19, 2024. Investors and interested parties can refer to this document for more information on the background of Magnus Holdings Co., Ltd.
This announcement is based on the latest SEC filing by Acushnet Holdings Corp., and provides insight into the company's financial strategies and shareholder value endeavors.
In other recent news, Acushnet Company reported a growth in its third quarter of 2024, driven by a 19% increase in Titleist Golf Club sales. The company saw a 5% rise in net sales, reaching $621 million, and a 9% increase in adjusted EBITDA to $107 million compared to the same period last year.
However, Titleist Golf Ball (NYSE:BALL) sales experienced a slight decrease of 1%. Acushnet also announced a narrowed adjusted EBITDA outlook for the full year and a significant share repurchase authorization.
The company is transitioning FootJoy footwear production to a new facility in Vietnam. These are some of the recent developments that have occurred within Acushnet. Despite mixed international performance, the company's overall growth trajectory remains positive.
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