AdvancePierre Gears Up for Secondary Offering

Print Email

AdvancePierre Foods Holdings Inc. (NYSE: APFH) has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding a secondary offering. The company intends to offer 12.5 million shares with an overallotment option for an additional 1.875 million shares. At the most recent closing price of $30.55, the entire offering is valued up to $439.16 million.

The underwriters for the offering are Barclays, Credit Suisse and Morgan Stanley.

This company markets and distributes roughly 2,900 stock keeping units (SKUs) across all day parts in multiple product categories, including: ready-to-eat sandwiches, such as breakfast sandwiches, peanut butter and jelly sandwiches and hamburgers; sandwich components, such as fully cooked hamburger and chicken patties and Philly steaks; and other entrées and snacks, such as country fried steak, stuffed entrées, chicken tenders and cinnamon dough bites.

In fiscal 2016, 54.2% of net sales were generated from the Foodservice segment, where commercial brands are highly sought-after and trusted by chefs, cooks and other purchasers. In the Retail segment, in addition to selling branded products, the company also leverages its R&D capabilities to co-create exclusive products and packaging designs with customers under their private label brands.

In the filing AdvancePierre Foods detailed its finances as follows:

In Fiscal 2016, we generated $1.6 billion in net sales, $136.3 million in net income, $124.4 million in Adjusted Net Income and $300.2 million in Adjusted EBITDA. In Fiscal 2015, we generated $1.6 billion in net sales, $37.1 million in net income, $66.8 million in Adjusted Net Income and $260.2 million in Adjusted EBITDA. Our net sales and Adjusted EBITDA in Fiscal 2016 reflect a compound annual growth rate (CAGR) of 1.7% and 22.5%, respectively.

The company will not receive any net proceeds from the offering, instead the selling stockholders will.

Shares of AdvancePierre were last seen down 3% at $29.65 on Thursday, with a consensus analyst price target of $32.20 and a 52-week trading range of $22.99 to $31.84.