Phoenix-based Republic Services has announced plans to repurchase up to $400 million of its common stock. That amount currently represents about 3.5 percent of the firm’s outstanding shares, Republic says.
“Following Republic’s merger with Allied Waste Industries in 2008, the company initiated a debt reduction program which, to date, has resulted in a reduction in borrowings of approximately $1.1 billion,” said James E. O’Connor, chairman and CEO of Republic Services, in a statement. “Given Republic’s strong financial position and predictable cash flows, we are now able to return to our pre-merger strategy of returning a substantial portion of our free cash flow to shareholders by reinstating our share repurchase program and continuing our cash dividend program. We remain committed to maintaining our investment grade rating and are always seeking to reinvest in core business opportunities.”