Brown-Forman declares stock split, special dividend — and it’s starting a foundationKAM
Brown-Forman Corp.’s board of directors has approved big-ticket moves to benefit its shareholders, employees and the community.
The Louisville-based spirits company declared a five-for-four stock split and a $1 special dividend.
Brown-Forman (NYSE: BFB) also will fully fund its current pension liability of $120 million.
And it will pursue the creation of a foundation with a contribution of $60 million to $70 million. The company said in a news release that it expects proceeds from the foundation will provide a consistent amount of revenue for its charitable giving program that would be independent of the company’s earnings.
“These capital deployment actions underscore the strength of the company’s balance sheet and health of our business, and are augmented by the anticipated benefits due to tax reform,” Brown-Forman CEO Paul Varga said in a news release.
“We believe the last many years of significant capital investment and portfolio reshaping have helped position our company for a continuation of the comprehensively strong results that Brown-Forman has historically enjoyed,” Varga continued. “Today’s announcement is reflective of the breadth and balance of stakeholder value we strive to create over time.”
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