After a speculated range of $20 to $23 per share, AdvancePierre Foods Holdings Inc. has announced its IPO will offer 18.6 million shares at $21 each, or almost $391 million.
With a revenue of $1.61 billion last year, Wall Street Journal (WSJ) reports that foodservice customers accounted for 55% of the company’s sales in that time.
Though the announcement came in on the lower end of projected expectations, reports were that AdvancePierre’s shares were up more than 15% post the IPO announcement. 11.1 million shares were sold, with proceeds planned to repay part of the company’s first-lien term loan.
According to WSJ, one of the company’s notable holders, Oaktree Capital Management LP, sold 7.5 million shares, coming to about $157.5 million.
“Today’s celebration marks an exciting and important milestone for AdvancePierre, and we are thrilled to make our public debut on the New York Stock Exchange,” the company’s President and CEO John Simons said, according to the press release, when commemorating the company’s debut as a public one on Friday, July 15th. “This is the beginning of a new and important chapter for AdvancePierre. We are incredibly proud of the company that our talented leadership team and employees have helped build, and we look forward to continuing to grow our business and delight our customers with superior service and great-tasting, innovative food solutions.”
This move is the latest in growth for AdvancePierre, who in the last year has added to its product offerings and bought the wholesale and manufacturing operations of Landshire Inc., as well as Better Bakery’s manufacturing assets, according to its website.
Among those, other brands AdvancePierre has include:
Continue to follow Deli Market News as we report on what this latest step means for AdvancePierre Foods, as well as other companies in the industry.
