Apollo’s Berry Plastics Said to Plan Starting IPO This Week
Berry Plastics Group Inc. (BERY), the container maker owned by funds tied to Apollo Global Management LLC (APO), may set terms for its initial public offering as soon as this week, said two people with knowledge of the matter.
Berry may seek a market value of about $2 billion in the sale, said the people, who asked not to be identified because the process is private. Bank of America Corp. is leading the offering, the people said.
The company, which makes consumer packaging ranging from drink cups to prescription vials, filed for a $500 million IPO in March. Apollo, based in New York, and Graham Partners Inc. agreed to acquire Berry’s parent, BPC Holding Corp., in a $2.25 billion deal in 2006 from the private-equity units of Goldman Sachs Group Inc. and JPMorgan Chase & Co.
The Evansville, Indiana-based company, which has completed 11 acquisitions in the past six years, will use the IPO proceeds to repay debt, regulatory filings show. Long-term borrowings totaled $4.5 billion as of June 30.
Citigroup Inc., Barclays Plc and Deutsche Bank AG will help manage the offering, according to the people familiar with the situation. The stock sold in the IPO will be equivalent to a 25 percent stake in the company, they said.
The net loss at Berry narrowed to $20 million in the nine months through June 30, compared with a loss of $107 million a year earlier, the filings show. Sales in the period were $3.6 billion.
Apollo-affilitated funds will maintain a majority stake in Berry after the IPO, according to the company’s filing. Domus Holdings Corp., the parent company of real-estate services provider Realogy, is another Apollo-owned company that’s planning an IPO.
The franchiser of residential real estate brokerages with rights to brands including Century 21, Coldwell Banker and Sotheby’s International Realty plans to raise as much as $1 billion in an initial offering, it said in a June regulatory filing.
Kerrie McHugh, a spokeswoman for Bank of America, and Charles Zehren, a spokesman for Apollo, declined to comment.
To contact the reporter on this story: Lee Spears in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Jeffrey McCracken at email@example.com