NEW YORK (AP) — Pinnacle Foods, which makes Birds Eye frozen foods and a host of other packaged food brands, says it plans raise about $551 million in its initial public offering.
The Parsippany, N.J.-based company expects to sell 29 million shares at between $18 and $20 per share, according to a filing with the Securities and Exchange Commission. The underwriters of the offering will have the option to purchase up to $4.4 million shares to cover overallotments.
The company said it expects proceeds of about $520.7 million, after underwriting discounts and commissions. It plans to use the proceeds of the offering to pay down debt
Pinnacle, which also makes Celeste pizzas, Duncan Hines baking mixes, Vlasic pickles and Lender's bagels and a list of other well-known packaged food brands, plans to list on the New York Stock Exchange under the ticker "PF." The company said in the filing its products can be found in 85 percent of all U.S. households.
After completion of the offering, the private equity firm The Blackstone Group will continue to own a majority of the voting power of all outstanding shares. Blackstone bought Pinnacle Foods Inc. in 2007. Pinnacle bought Birds Eye in 2009.
For the 12 months ended Dec. 30, Pinnacle reported net sales of $2.48 billion, and net income of about $52.6 million. Between 2008 and 2012, the company reported sales growth of 59 percent.