Gentherm initiates $60M accelerated share repurchase

Gentherm (THRM) announced that it has entered into an accelerated share repurchase agreement, ASR, with Bank of America (BAC), to repurchase an aggregate of $60 million of Gentherm’s common shares. The agreement was entered pursuant to the Company’s previously announced stock repurchase program. The Board of Directors authorized an extension of the stock repurchase program through June 30, 2024, which had approximately $97 million remaining as of October 31, 2023. The Company will initially receive approximately 1.22M common shares. The final number of shares to be repurchased will be based on the volume-weighted average price of Gentherm’s common shares during the term of the transaction, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR. The final settlement of the transactions under the ASR is expected to occur no later than the second quarter of 2024. “I am pleased to announce our $60 million ASR, which reflects the strength of our balance sheet, cash flow generation and ample liquidity, as well as management and our Board’s continued confidence in our ability over time to grow faster than automotive production while improving profitability,” said Matteo Anversa, Executive Vice President of Finance, Chief Financial Officer and Treasurer. “Returning capital to our shareholders through stock repurchase programs while simultaneously investing in our strategic growth drivers, is consistent with our capital allocation strategy and commitment to increasing shareholder value.”