Chesapeake-based Dollar Tree Inc. has signed an agreement with JPMorgan Chase Bank to repurchase $200 million of its common shares.
The discount retailer described the plan as a “variable maturity, accelerated share repurchase program” under an existing plan to buy back $500 million in shares announced in June 2010. All common shares repurchased under the accelerated share repurchase program will be retired.
“Our share repurchase program continues to represent an important part of our capital allocation strategy and an efficient and flexible way of returning value to shareholders,“ President and CEO Bob Sasser said in a statement. “We ended second quarter 2011 with $545 million in cash and investments and are confident in the company’s ability to continue to generate substantial free cash flow for the foreseeable future.“
Of July 30, Dollar Tree operated 4,242 stores in 48 states and 4 Canadian provinces.
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