By Dean Seal
Shares of Beauty Health Co. advanced 14% to $9.54 in early trading after the company said it has agreed to repurchase $100 million in stock, closing out a buyback program it launched earlier this year.
The Long Beach, Calif.-based beauty company, known for its flagship brand HydraFacial, said Thursday it entered into an accelerated share repurchase agreement with JP Morgan Chase Bank NA that will see it buy about 9.5 million shares for $100 million.
The transaction is linked to the $200 million share repurchase program the company opened in September. As part of that program, Beauty Health immediately agreed to repurchase about 7.7 million shares for $100 million, leaving another $100 million in the tank for future buybacks.
The company said Thursday that it will now use up that last $100 million. The repurchases will be funded with cash on hand, Beauty Health said.
The buyback announcement comes days after the company reported that it swung to a small profit for the third quarter and grew global sales 30%.
Shares are down more than 60% this year.
Write to Dean Seal at dean.seal@wsj.com
