Food distribution giant Performance Food Group has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC), setting the terms of its upcoming initial public offering (IPO).

 

The group plans to offer 14.5 million shares priced between $22 and $25 per share, with an overallotment option allowing for the sale of an additional 2.175 million shares. If the maximum per share price is obtained, the entire offering will be valued at $416.9 million.

 

When ranked according to revenue, Performance Food Group is the third largest player in the expanding $240 billion U.S. foodservice distribution space. The company markets and distributes approximately 150,000 food and food related products to over 150,000 customers that include hospitals, theaters, big-box retailers, restaurants, schools, and business and industry locations across the U.S.

 

In the fiscal year ending June 28, 2014, the company generated $13.7 billion in net sales and $286.1 million in earnings before interest, tax, depreciation, and amortization (EBITDA), marking an annual compounded growth in net sales of 8% and a compounded annual growth in adjusted earnings of 10% since fiscal year 2010, according to the company’s SEC filing.  Further, during the first nine months of fiscal year 2015, the company generated $11.3 billion in net sales and $226.1 million in adjusted EBITDA – representing growth rates of 12% and 17% respectively year on year.

 

The group states it will use the funds raised through the offering to pay down its debt and will use the remaining funds for general corporate purposes.