Kroger to repurchase $1 billion in stock
June 26, 2007
by FoodBusinessNews.net Staff
CINCINNATI — The Kroger Co. is repurchasing $1 billion of its common stock, and the repurchase replaces the $500 million stock buyback announced in May 2006.
The exact timing of the repurchases will depend on market conditions.
"The new share repurchase program reflects our confidence in the company’s customer first strategic plan and our belief that Kroger shares represent an attractive investment opportunity," said David B. Dillon, chairman and chief executive officer.
The company has decreased its net total debt to EBITDA ratio from 2.8 to 1.8 since January 2000, which is a reduction of 1 times EBITA. Because of this success, Kroger anticipates using the free cash flow to repurchase shares and pay dividends all while retaining a solid investment grade rating.