AdvancePierre Said to Tap Barclays, Morgan Stanley for IPO

  • Food maker backed by Oaktree Capital previously explored sale
  • Offering could value company at as much as $2.5 billion

AdvancePierre Foods, the food manufacturer and supplier backed by investment firm Oaktree Capital Group LLC, tapped Barclays Plc, Credit Suisse Group AG and Morgan Stanley to manage its initial public offering, people with knowledge of the matter said.

The Cincinnati-based company, which offers more than 3,000 products including Barber Foods stuffed chicken breasts and PB Jamwich sandwiches, could be valued at as much as $2.5 billion in an IPO, people familiar with the situation have said. AdvancePierre posted 2015 earnings before interest, taxes, depreciation and amortization of about $260 million.

AdvancePierre, which previously explored a sale, could list its shares as soon as the second quarter, according to the people familiar with the latest plans, who asked not to be identified because the information is private.

The company, which previously planned a public listing as soon as the first three months of the year, may be waiting for the U.S. IPO market to show some signs of life before it moves forward. No companies went public in the U.S. in January because of market volatility.

That may change this week: Editas Medicine Inc., a gene-editing drugmaker backed by Bill Gates and Google Ventures, plans to raise as much as $106.2 million in an IPO scheduled to price after markets close Tuesday, according to data compiled by Bloomberg. BeiGene Ltd., a biotechnology company based in Beijing, is seeking to raise as much as $132 million in an offering slated for the same day.

A spokesman for Oaktree declined to comment, as did representatives of Morgan Stanley, Credit Suisse and Barclays.

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