Performance Food Group Co. (NYSE: PFGC) entered the market late last year in an initial public offering. The company now has filed with the U.S. Securities and Exchange Commission (SEC) to have a secondary offering. PFG is planning to sell 12 million shares with an overallotment option for an additional 1.8 million shares. At the current market price, the entire offering is valued up to roughly $357.97 million.
The underwriters for this offering are Credit Suisse, Barclays, Wells Fargo, Morgan Stanley, BB&T Capital Markets, Guggenheim Securities and Macquarie Capital.
This is the third largest player by revenue in the growing $240 billion U.S. foodservice distribution industry, which supplies the diverse $640 billion U.S. “food-away-from-home” industry. The company markets and distributes about 150,000 food and food-related products from 68 distribution centers to over 150,000 customer locations across the United States.
Performance Food serves a diverse mix of customers, from independent and chain restaurants to schools, business and industry locations, hospitals, vending distributors, office coffee service distributors, big-box retailers and theaters. It sources its products from over 5,000 suppliers and serves as an important partner to suppliers by providing them access to its broad customer base.
Over 12,000 employees work across its three segments: Performance Foodservice, PFG Customized and Vistar.
The company detailed its finances as follows:
In the fiscal year ended June 27, 2015, we generated $15.3 billion in net sales and $328.6 million in Adjusted EBITDA, representing compound annual growth rates of 9% and 11%, respectively, since fiscal 2010. In the fiscal year ended June 27, 2015, we generated $56.5 million in net income. During the first nine months of fiscal 2016, we generated $11.7 billion in net sales and $251.9 million in Adjusted EBITDA, representing growth rates of 4% and 11%, respectively, compared to the first nine months of fiscal 2015. During the first nine months of fiscal 2016, we generated $39.1 million in net income. In calendar year 2014, we had an estimated industry share of 6.0% and our sales growth rate since calendar year 2010 is approximately three times the growth rate of the foodservice distribution industry in that same time frame.
The company will not receive any proceeds from this offering. Instead the proceeds are going to the selling shareholders.
Shares of PFG were trading down 3.6% at $26.03 midday Tuesday, with a consensus analyst price target of $28.60 and a post-IPO trading range of $18.72 to $28.13.
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