Enerpac Tool Group Corp. (NYSE: EPAC) saw its shares leap early Wednesday, on plans to increase shareholder returns.
The company today announced that its Board of Directors and management team are taking actions intended to enhance returns, including the launch of ASCEND, a new transformation program focused on driving accelerated earnings growth and efficiency across the business. In addition to the transformation, the Company also announced today the authorization of a 10-million share repurchase program.
As part of ASCEND, the Company will focus on accelerating organic growth go-to-market strategies including improved commercial effectiveness, vertical market-specific commercial and product strategies, channel optimization through its 80/20 approach, strategic pricing optimization, and selective innovation to meet broader and emerging market demands.
Also a priority is improving operational excellence and production efficiency by utilizing a lean approach. The company will also continue to simplify its business by further optimizing its footprint, accelerating global strategic sourcing and indirect spend optimization, and rationalizing SKUs in line with its 80/20 approach.
The company would also like to drive greater efficiency and productivity in SG&A by better leveraging resources to create a more efficient and agile organization.
The company intends to optimize G&A through consolidation and additional shared services implementation. In addition, the company intends to strengthen its salesforce effectiveness by enhancing sales and channel coverage, while flattening its structure to move closer to customers. Moreover, the company will also look to further simplify and rationalize its legal entity structure.
EPAC shares began Wednesday with a jump of $2.24, or 11.1%, to $22.38.
