ADM Announces $1 Billion Accelerated Share Repurchase Agreement

CHICAGO--(BUSINESS WIRE)-- ADM (NYSE: ADM) today announced that it has entered into an accelerated share repurchase (ASR) agreement with delayed share delivery with Merrill Lynch International, an affiliate of BofA Securities, Inc., to repurchase $1 billion of ADM’s common stock.

“We finished 2023 with strong momentum in terms of returning cash to our shareholders, and we will continue to prioritize shareholders in our cash deployment in 2024,” Board Chair and CEO Juan Luciano said. “After repurchasing $1.5 billion of shares in Q4 2023 and nearly $330 million of shares so far in Q1 2024, we are accelerating our program, with an intention to actualize $2 billion of additional share repurchases during the remainder of the year, including $1 billion of which will be executed through this accelerated share repurchase program, which runs through the second quarter.”

Under the ASR agreement, ADM will receive monthly share deliveries at the end of each month commencing in March 2024. The total number of shares to be repurchased through the ASR will be determined using a formula based on ADM’s share price during the term of the transaction, with the purchase price determined using a formula based on ADM’s daily volume-weighted average price during the term of the transaction, net of a discount, and is expected to be completed no later than the end of the second quarter of 2024. The ASR will be completed under ADM’s existing 200 million share repurchase program that runs through 2024.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this release, are forward-looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “outlook,” “will,” “should,” “can have,” “likely,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. All forward-looking statements are subject to significant risks, uncertainties and changes in circumstances that could cause actual results and outcomes to differ materially from the forward-looking statements. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, without limitation, those that are described in the Company’s most recent Annual Report on Form 10-K and in other documents that the Company files or furnishes with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except to the extent required by law, ADM does not undertake, and expressly disclaims, any duty or obligation to update publicly any forward-looking statement after the date of this announcement, whether as a result of new information, future events, changes in assumptions or otherwise.

About ADM

ADM unlocks the power of nature to enrich the quality of life. We’re a premier global human and animal nutrition company, delivering solutions today with an eye to the future. We’re blazing new trails in health and well-being as our scientists develop groundbreaking products to support healthier living. We’re a cutting-edge innovator leading the way to a new future of plant-based consumer and industrial solutions to replace petroleum-based products. We’re an unmatched agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. And we’re a leader in sustainability, scaling across entire value chains to help decarbonize our industry and safeguard our planet. From the seed of the idea to the outcome of the solution, we give customers an edge in solving the nutritional and sustainability challenges of today and tomorrow. Learn more at www.adm.com.

Source: Corporate Release

Source: ADM