COLUMBUS, Ind. — Cummins Inc. has entered into an accelerated share repurchase agreement with Goldman, Sachs & Co. to repurchase $500 million of Cummins’ common stock.
The move is part of Cummins’ previously announced share repurchase plans authorized by the board of directors.
“This $500 million ASR agreement reflects our view that the company’s shares are currently trading well below intrinsic value, and is consistent with our plans to return 75 percent of operating cash flow to shareholders in 2016,” said Chairman and CEO Tom Linebarger.