SAN LEANDRO, Calif. -- Otis Spunkmeyer Holdings Inc. registered Tuesday for an initial public offering (IPO) of up to $230 million in common stock, according to the Associated Press, citing a filing with the Securities & Exchange Commission (SEC).
The company makes cookies, muffins, brownies, bagels and frozen cookie dough. Kenneth Rawlings started Otis Spunkmeyer in 1977 with a retail cookie store in Oakland. The name was dreamed up by the founder's then 12-year-old daughter.
The company shifted its focus to wholesale manufacturing [image-nocss] of cookies, adding thaw-and-serve muffins in 1990. CEO John Schiavo has been with the company since 1996. Buyout firm Code Hennessy & Simmons now owns a 75% stake in the company.
San Leandro, Calif.-based Otis Spunkmeyer has 1,183 employees. The company has four manufacturing facilities, including one in San Leandro.
The company produces about 10 million cookies per day and one million muffins a day, selling to foodservice contractors such as Aramark and restaurant chain Subway as well as retail customers such as Wal-Mart, Sam's Club, Costco, Safeway and Kroger, and many convenience store chains.
Details about the number of shares offered and estimated price range for the IPO were not disclosed in the filing. Some of the shares will be sold by shareholders, the filing said.
The company said it will use net proceeds from the IPO to redeem debt and preferred stock, and for general corporate purposes.
Merrill Lynch & Co. and JPMorgan were listed as underwriters for the offering.
For the three months ended April 1, Otis Spunkmeyer reported net income of $2.4 million, up from $624,000 in the comparable period last year. From 2000 to 2005, the company's net sales grew from $211.9 million to $336.3 million, although the company incurred net losses in three of the past five years.
The company said it plans to list its common shares on the Nasdaq Global Market under the symbol OTIS.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.