AdvancePierre Foods Gears Up for IPO

Companies and Brands

Published: April 11, 2016 11:45 am

Last Updated: January 13, 2020 10:55 am

AdvancePierre Foods has registered an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing terms were given in the filing, but the offering is valued up to $100 million, although this number is usually just a placeholder. The company has yet to decide on which exchange it plans to list its shares or even with what symbol.

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

This company markets and distributes roughly 2,600 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 2015, 67.4% of net sales were attributable to the fast-growing ready-to-eat sandwiches and sandwich components categories. These products are shipped frozen to customers and sold under the company’s commercial and retail brands, as well as private label and licensed brands.

In the filing AdvancePierre Foods detailed:

We sell to a diverse set of over 3,000 customers and have an average relationship tenure of approximately 20 years with our top 20 customers. We employ a customer-centric approach, which is rooted in market-leading research and development (“R&D”) capabilities, product quality and customer service. We have dedicated marketing and sales teams for each of our channels to serve the specific needs of our customers. We enjoy “category captain” status in many of our product categories with our largest foodservice customers. In many cases, we collaborate with our customers to develop new products, customizing recipes and flavors in a cost efficient manner. We believe our customer-centric approach is a competitive advantage that helps our customers grow their businesses and, in turn, accelerates our organic growth and profitability.

The company did not share how it expects to use the net proceeds from this offering.

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