GLENVIEW, Ill. (AP) — Mead Johnson Nutrition Co. said Wednesday that its board has approved a $500 million share repurchase plan.
This buyback plan is in addition to about $9.7 million remaining under its existing $300 million plan, which was approved in 2010.
Mead Johnson said the repurchase program is intended to offset the dilution on earnings due to equity-based compensation and allow for the company to return capital to shareholders.
Jim Cornelius, chairman of the board, said the move reflects confidence in the company's future - both in terms of business prospects and ability to generate strong cash flow.
Mead Johnson, based in Glenview, Ill., makes Enfamil infant formula and other children's nutrition products. Its shares increased 38 cents to $75.28 in after-hours trading following the announcement.