Freshpet Files for IPO: Healthier Pet Food
Freshpet Inc. has filed its S-1 form with the U.S. Securities and Exchange Commission (SEC) for an initial public offering.
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Freshpet Inc. has filed its S-1 form with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO). No terms were given for the offering, but it has the potential to raise up to $100 million. The company has not announced whether it plans to list on the New York Stock Exchange or the Nasdaq, and it also did not signal a proposed ticker.
The underwriters for this offering are Goldman Sachs, Baird, Stifel, SunTrust Robinson Humphrey, Credit Suisse and Canaccord Genuity.
Freshpet produces dog and cat food that offers healthier alternatives than traditional pet food might offer. It has positioned its brand to benefit from mainstream trends of growing pet humanization and consumer focus on health and wellness. The company has expanded its network of Freshpet Fridges within leading blue-chip retail chains, including Albertsons, BJ’s, Kroger, Petco, PetSmart, Publix, Safeway, Target, Walmart and Whole Foods. At the end of June, Freshpet Fridges were located in more than 12,500 stores, and the company expects there is an opportunity to install a Freshpet Fridge in at least 35,000 stores across North America.
Freshpet Fridge store locations increased to 10,836 in 2013 from 7,001 in 2011, which represented a compound annual growth rate of 24%. The company also installed 12,593 Freshpet Fridges in the year ending in June 2014, which grew 28% from the previous period of the same size.
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Net sales increased to $63.2 million in 2013 from $25.4 million in 2011, representing a compounded annual growth rate of 58%. For the six months ending in June, it had reported net sales of $39.7 million, representing growth of 38% over the same period a year ago.
Net loss from operations decreased to $12.4 million in 2013 from $23.4 million in 2011. The six months ending in June 2014 reported a net loss of $5.6 million, and the same period of the previous year reported a net loss of $6.4 million.
Freshpet plans on using the proceeds from this offering to pay off its indebtedness, as well as installing new Freshpet Fridges to increase its manufacturing capacity.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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