Industrial conglomerate Tomkins announced plans on Monday for a £400m buyback of 15% of its shares.
The move follows criticism that it should have done more last year with its cash pile and reflects a board decision that there are no suitable bolt-on acquisitions now available.
Tomkins also announced that it is to sell two garden and leisure products firms, Murray of the US and the UK’s Hayter, two relatively poorly performing and seasonal companies.
‘It’s a move that will improve the quality of Tomkins’ portfolio,’ said Charterhouse Tilney analyst Guy Hewitt.
However, the company announced it would keep the other main component of its leisure division, Smith & Wesson handguns, which had also been seen as a candidate for disposal.