Goochland company sets IPO pricing

PFG has been privately held for six years.

PFG has been privately held for six years.

A local food distribution giant could raise about $400 million in its planned IPO.

Performance Food Group, headquartered in Goochland and majority-owned by The Blackstone Group and Wellspring Capital Management, announced Monday that it will offer 14.5 million shares at an expected price range of $22-$25 per share.

The company did not say when the shares will officially hit the market. A Bloomberg report, citing anonymous sources, said the IPO could take place as early as this year.

PFG has already received approval to have the shares listed in the New York Stock Exchange under the ticker symbol “PFGC.”

Of the 14.5 million shares offered, 12.77 million will come from PFG directly. Another 1.72 million will be offered by “certain selling stockholders,” who will retain the proceeds of the sale of their shares. The underwriters of the offering have the first right to buy an additional 2.17 million shares, bringing the total offering to 16.67 million.

The investment banking firms handling the IPO include Credit Suisse Securities, Barclays Capital, Wells Fargo Securities, Morgan Stanley, Blackstone Capital Markets, BB&T Capital Markets, Guggenheim Securities and Macquarie Capital.

PFG first signaled its intentions to go public about a year ago with an initial prospectus filed with the SEC.

It marks the second time in its history that it will go public. Prior to being taken private by Blackstone and Wellspring in 2008, PFG had been one of Richmond largest publicly traded companies.

Still, as a private company, its revenues rival Altria, Dominion, CarMax and the other giants of the Richmond business scene. It generated $13.7 billion in net sales in fiscal year 2014, according to SEC filings. It ended that year with $15.5 million in net income.

It is currently the third-largest food distribution company in the country behind Sysco Corp. and US Foods. Those two competitors tried to merge earlier this year, before regulators blocked the deal. That resulted in a $25 million windfall for PFG.

Headquartered at 12500 West Creek Parkway, PF distributes 150,000 products from 67 distribution centers to more than 150,000 customers. In addition to distributing food, the company provides services to restaurants including product selection, menu development and strategy.

Its list of chain restaurant customers includes Cracker Barrel, Outback Steakhouse, Wendy’s and Taco Bell.

It also sells to schools, businesses, hospitals, big box retailers, theaters and others.

The company has approximately 11,000 employees, including 220 full-time staffers at its West Creek headquarters.

A 334,000-square-foot warehouse and distribution center just off Staples Mill Road serves as the home to its Performance food service arm. That facility has 287 employees.

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