Amplify Prices Secondary Offering

Amplify Snack Brands Inc. (NYSE: BETR) has announced the pricing for its secondary offering. The company will price its 10 million shares at $11.25 with an overallotment option for an additional 1.5 million shares. At this price the entire offering is valued up to $129.38 million.

The underwriters for the offering are Goldman Sachs, Jefferies, Credit Suisse, SunTrust Robinson Humphrey, Piper Jaffray, William Blair and Oppenheimer.

This high-growth snack-food company is focused on developing and marketing products that appeal to consumers’ growing preference for better-for-you (BFY) snacks. Its anchor brand, SkinnyPop, is a rapidly growing, highly profitable and market leading BFY ready-to-eat popcorn brand.

In April 2015, Amplify acquired Paqui, an emerging BFY tortilla chip brand that has many of the same key taste and BFY attributes as SkinnyPop. The acquisition allows the company to leverage its infrastructure to help it grow into an adjacent snacking sub-segment with a second innovative BFY brand. Amplify believes that its focus on building a portfolio of exclusively BFY snack brands differentiates it and will allow it to leverage its platform to realize material synergies across its family of BFY brands, as well as allow our retail customers to consolidate their vendor relationships in this large and growing category.
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The SkinnyPop brand, established in 2010, embodies the BFY mission while also providing rapid revenue and earnings growth, robust and steady margins, and strong cash flows to help facilitate further investments in organic and inorganic growth opportunities. Amplify believes SkinnyPop continues to take meaningful market share from a variety of sizable sub-segments of the overall U.S. salty snack segment.

The company will not receive any proceeds from this offering. Instead the selling stockholders will.

Shares of Amplify Snack Brands traded up 9.6% to $13.17 on Friday. The stock has a consensus price target of $18.29 and a post-IPO trading range of $1.60 to $16.56.