CINCINNATI -- AdvancePierre Foods Holdings Inc., a leading national producer and distributor of sandwiches, sandwich components and other entrées and snacks to convenience stores and other foodservice providers, has announced that it has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) relating to a proposed initial public offering (IPO) of shares of its common stock.
The company has not yet determined the number of shares and the price range for the proposed offering.
It will be for up to $100 million, according to a Reuters report.
AdvancePierre offers a "differentiated value proposition" to its customers because of its "scale, broad product portfolio, customization capabilities, national distribution and food safety track record," it said in the filing with the SEC.
"We market and distribute approximately 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," it said.
The company produces more than 600 million sandwiches per year. In fiscal 2015, it attributed 67.4% of its overall net sales to the ready-to-eat sandwiches and sandwich components categories. It attributed 77.6% of its convenience-store channel net sales to its retail brands, such as Big AZ, and 21.6% to private-label brands and licensed brands.
During 2013 and 2014, AdvancePierre's board of directors hired John Simons as president and CEO, as well as four of the seven other members of its current executive team. This new team has revamped the company's cost structure, budgeting tools and pricing methodology by implementing a continuous improvement program that it calls the "APF Way." It uses a data-driven analytical framework to drive growth and profitability.
"We believe the APF Way has fundamentally changed the cost structure of our business and has been a major factor in our recent volume, sales and profitability growth," said the company.
Barclays Capital Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC are acting as joint book-running managers for the proposed offering.
AdvancePierre, with headquarters in Cincinnati, is a leading national producer and distributor of value-added, convenient, ready-to-eat sandwiches, sandwich components and other entrées and snacks to a wide variety of distribution outlets, including foodservice, retail and convenience-store providers. It had 2015 revenues of $1.6 billion. A fund managed by Oaktree Capital Management LP, a Los Angeles-based investment firm, is the majority shareholder of AdvancePierre.
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