Pinnacle Foods Ipo
\
Pinnacle Foods Inc.: Initial Public Offering
MACKK Consulting Group
BSAD 444.20
April 1st, 2013
Company History
Pinnacle Foods Group is a food packaging company specializing in shelf stable and frozen food categories. The company was formed in 1998 as Vlasic Foods International, acquiring several food-manufacturing brands such as Swanson TV dinners and Open Pit from the Campbell Soup Company.
Pinnacle’s portfolio of iconic brands dates back in existence to the 1800s. The earliest brand owned by Pinnacle Foods, Armour Star, has existed since 1867 when Philip Armour founded it as Armour and Company. Armour was the first company to produce canned meat and was once Chicago’s most important business, helping to make the city and its stockyards the center of the American meatpacking industry. Throughout the late 1800s and 1900s, iconic brands such as Duncan Hines, Log Cabin, Aunt Jemima and Hungry Man were introduced and now are a part of the Pinnacle Foods name. Pinnacle Foods acquired Aurora Foods in 2003 when the company’s health was in jeopardy due to lawsuits in 2001. Ian Wilson, a former executive with Coco-Cola, founded Aurora Foods in 1995 using the company to purchase Van de Kamp Seafood from Pillsbury along with several other brands. As a result of major lawsuits in 2001, Wilson and other Aurora executives plead guilty to securities fraud for misrepresentation of the company’s financial statements. Jim Smith replaced Wilson as CEO of Aurora Foods until 2002, at which time motions were set in place that lead to Pinnacle’s acquisition of Aurora. Pinnacle closed Aurora’s Missouri offices and moved them to Cherry Hill, New Jersey where the currently remain.
In 2007 The Blackstone Group, a New York City private equity firm, bought Pinnacle Foods for $2.16 billion (G.S., 2007). Since then, Pinnacle Foods has acquired Birds Eye Foods, Inc., adding a mix of frozen and specialty brands to its already iconic portfolio.
Industry Overview *
Pinnacle Foods Inc.: Initial Public Offering
MACKK Consulting Group
BSAD 444.20
April 1st, 2013
Company History
Pinnacle Foods Group is a food packaging company specializing in shelf stable and frozen food categories. The company was formed in 1998 as Vlasic Foods International, acquiring several food-manufacturing brands such as Swanson TV dinners and Open Pit from the Campbell Soup Company.
Pinnacle’s portfolio of iconic brands dates back in existence to the 1800s. The earliest brand owned by Pinnacle Foods, Armour Star, has existed since 1867 when Philip Armour founded it as Armour and Company. Armour was the first company to produce canned meat and was once Chicago’s most important business, helping to make the city and its stockyards the center of the American meatpacking industry. Throughout the late 1800s and 1900s, iconic brands such as Duncan Hines, Log Cabin, Aunt Jemima and Hungry Man were introduced and now are a part of the Pinnacle Foods name. Pinnacle Foods acquired Aurora Foods in 2003 when the company’s health was in jeopardy due to lawsuits in 2001. Ian Wilson, a former executive with Coco-Cola, founded Aurora Foods in 1995 using the company to purchase Van de Kamp Seafood from Pillsbury along with several other brands. As a result of major lawsuits in 2001, Wilson and other Aurora executives plead guilty to securities fraud for misrepresentation of the company’s financial statements. Jim Smith replaced Wilson as CEO of Aurora Foods until 2002, at which time motions were set in place that lead to Pinnacle’s acquisition of Aurora. Pinnacle closed Aurora’s Missouri offices and moved them to Cherry Hill, New Jersey where the currently remain.
In 2007 The Blackstone Group, a New York City private equity firm, bought Pinnacle Foods for $2.16 billion (G.S., 2007). Since then, Pinnacle Foods has acquired Birds Eye Foods, Inc., adding a mix of frozen and specialty brands to its already iconic portfolio.
Industry Overview *
References: Driscoll, M. (2013, Mar 25). Pinnacle is hoping investors feel hungry. Wall Street Journal. Retrieved from http://search.proquest.com/docview/1319182111?accountid=13803 G., S. S. (2007). Black stone Chows Down On Pinnacle Foods Group. (cover story). High Yield Report, 18(7), 1-15. Stegelin, F., & Houston, J. (2007). Factors Influencing the Initial Public Offering (IPO) Decision of Food Distribution Firms. Journal Of Food Distribution Research, 38(1), 215-216. Stratton, K. (2012). Pinnacle Foods Group Gets 55,000SF Update in Parsippany. National Real Estate Investor Exclusive Insight, 8. Bisbey, A. (2012). Pinnacle Foods Shopping $300M Incremental TL. High Yield Report, 23(34), 28. PRNewswire (2013, Apr 3). Pinnacle Foods Inc. Announces Successful Closing of its Initial Public Offering. http://investors.pinnaclefoods.com/phoenix.zhtml?c=223400&p=irol-newsArticle&ID=1803206&highlight= PRNewswire (2013, Mar 6). Pinnacle Foods Finance LLC Reports Fourth Quarter Fiscal 2012 Results. http://investors.pinnaclefoods.com/phoenix.zhtml?c=223400&p=irol-newsArticle&ID=1795035&highlight= Business Wire (2013, Mar 27). Pinnacle Foods Inc. Announces Pricing of its Initial Public Offering. http://investors.pinnaclefoods.com/phoenix.zhtml?c=223400&p=irol-newsArticle&ID=1801326&highlight= http://www.rttnews.com/2088372/pinnacle-foods-raises-net-proceeds-of-627-mln-in-ipo.aspx?type=bn pinnacle website