EL PASO, Texas—Helen of Troy's board has approved the repurchase of $550 million shares of its common stock.

The company, whose brands including Febreze and Dr. Scholl's, said that it will start a modified "Dutch auction" tender offer on Monday to buy up to $300 million of its shares. It plans to repurchase the shares at a price of no more than $66.50 per share, but not less than $57.75 per share.

In a Dutch auction, shareholders can decide how many shares they want to sell and at what price, within a specified range. The company then determines the lowest per-share price within the range that lets it buy the amount of shares that it wants.

Helen of Troy Ltd. said it also plans to repurchase an additional $250 million shares over the next three years.

The El Paso, Texas, company said it plans to use available cash and borrowings under an existing revolving credit facility to pay for the shares and all fees and expenses.

Helen of Troy said that the $550 million buyback represents about 28.88 percent of its outstanding shares, based on its closing price on Friday. It had approximately 32.1 million outstanding shares as of Feb. 5.

Last month Helen of Troy announced that co-founder Gerald Rubin was stepping down as CEO and president and resigning from its board immediately to take a job as CEO of a commercial real estate firm in El Paso. It named CFO Thomas Benson as interim CEO and said that Julien Mininberg would become CEO in March.

Its shares rose $3.31, or 5.


6 percent, to $62.66 in premarket trading about 30 minutes ahead of the market open. They have risen about 62 percent over the past year.