Freshpet, which sells refrigerated petfood, has announced terms for its IPO. The New Jersey-based company plans to raise US$135 million by offering 10.4 million shares at a price range of US$12 to US$14. At the midpoint of the proposed range, Freshpet would command a fully diluted market value of US$414 million.
The company cites a growing trend of "pet humanization" in the US where owners treat their pets as family members, along with the popularity of fresh, natural and organic food products among US consumers. Freshpet is backed by growth equity from MidOcean Partners and an investment vehicle co-owned by Chairman and CEO Charles Norris and Kayne Anderson Capital Advisors. Tyson Foods is also a stockholder.
Freshpet, which was founded in 2004 and booked US$74 million in sales for the 12 months ended June 30, 2014, plans to list on the NASDAQ under the symbol FRPT. Goldman Sachs and Credit Suisse are the joint bookrunners on the deal. It is expected to price during the week of Nov. 3, 2014.