Amplify Snack Brands Inc., the company behind SkinnyPop ready-to-eat popcorn, as well as Paqui tortillas and tortilla chips, is kicking off the process for its initial public offering of stock, according to a regulatory filing on Friday.
Amplify plans to sell a minimum of 15 million shares, starting at $14 to $16 per share, according to the filing. At $15 per share, Amplify would raise approximately $225 million in gross proceeds. The shares will be listed on the New York Stock Exchange under the ticker symbol “BETR,” according to CNBC.
Amplify Snack Brands develops and markets Better-For-You, or BFY, products. The company’s flagship brand, SkinnyPop, was established in 2010 and has continued to see rapidly growing success. In April 2015, Amplify acquired Pacqui, which helped the company grow into an adjacent snacking sub-segment, it states in the filing.
Nielsen estimates global retail snack sales to be in excess of $370 billion and North America retail snack sales in excess of $120 billion for the twelve months ended March 31, 2014.
“We believe a variety of favorable consumer trends, including a greater focus on health and wellness, increased consumption of smaller, more frequent meals throughout the day and a strong preference for convenient BFY products, will continue to drive both strong overall snacking growth as well as the continued performance of BFY products within the overall market,” the company states in the filing. “Over time, we expect to explore the development and acquisition of additional BFY brands within other U.S. and global segments of the overall snacking market.”
Amplify reported $132.4 million in revenue in 2014, while its sales grew 72 percent to $44.3 million during Q1 2015, according to filing. During the time, SkinnyPop was Amplify’s only brand.
TA Associates, Amplify’s largest shareholder, bought a stake in SkinnyPop Popcorn in 2014. It will reportedly sell 12.3 million shares in the offering and still own a majority stake in Amplify after the IPO.
CEO Thomas Ennis, who joined Amplify in July 2014, and Co-Founders Andrew Friedman and Pamela Netzky, are also selling some stock in the offering.
According to the Austin Business Journal, Amplify plans to grow by increasing its distribution channels, entering international markets, and introducing new BFY snack products.
No date has yet been set for the public offering. Stay tuned to Deli Market News as we follow any further coverage.
