Pinnacle Foods Raises $580 Million, Pricing IPO at Top of RangeLee Spears
Pinnacle Foods Inc., the Blackstone Group LP-owned maker of Hungry-Man dinners and Birds Eye frozen vegetables, raised $580 million in its initial public offering, pricing the shares at the top end of the marketed range.
The Parsippany, New Jersey-based company sold 29 million shares, equivalent to a 26 percent stake, for $20 each, according to data compiled by Bloomberg, after offering them for $18 to $20. The shares will start trading today, listed on the New York Stock Exchange under the symbol PF.
Pinnacle, led by Chief Executive Officer Robert Gamgort, proceeded with its IPO after delaying it last year because of slumping consumer sentiment, people familiar with the situation said at the time.
Blackstone bought Pinnacle for $2.2 billion about six years ago, and combined the company with Birds Eye Foods Inc. in a $1.3 billion acquisition in 2009. Blackstone didn’t plan to offer shares in the sale, regulatory filings show.
Pinnacle generated about $2.5 billion in sales last year. At the IPO price, the company has a market value of about $2.26 billion.
Barclays Plc and Bank of America Corp. led the offering.