The parent company of Pick ‘n Save and other supermarket chains hopes to sell its stock to the public at $10 to $12 per share, according to documents filed last week with the U.S. Securities and Exchange Commission, the Journal Sentinel reports.
The privately held Roundy’s Parent Co., which also operates the Copps and Rainbow supermarket chains, filed a preliminary prospectus in December for an initial public offering. That December filing didn’t include a proposed share price.
In the amended filing made Jan. 26, Milwaukee-based Roundy’s says it plans to raise $111 million through the stock sale. That amount assumes a share price of $11, the filing said.
The company will sell 11.4 million shares, with 6.8 million shares sold by other stockholders, the prospectus said. Also, there are options for those other stockholders to sell another 2.7 million shares.
Once the sale is completed, there will be 41.5 million shares outstanding. The shares not sold to the public will apparently be held by Chicago investment firm Willis Stein & Partners, which has owned Roundy’s since 2002.
Roundy’s will use cash raised by the stock sale, along with proceeds from a debt refinancing, to pay off all its existing debt, the prospectus said. That debt totals more than $800 million, the Journal says.
The company also plans to pay a quarterly dividend of 23 cents a share. That first dividend is expected to be paid after the first quarter of 2012.
Roundy’s, with 18,000 employees, operates 158 stores in Wisconsin, Minnesota and Illinois, including 60 stores in the Milwaukee area. Pick ‘n Save is the No. 1 supermarket chain in the Milwaukee area, with a 55 percent market share, the prospectus says.
Company executives have declined to discuss the initial public offering because the company is in a federally mandated “quiet period,” according to the Journal.
The amended filing does include preliminary financial results for 2011.
Roundy’s is expected to report sales of $3.84 billion for 2011. That’s a 2 percent increase from 2010 but amounts to a 0.2 percent decrease in same-store sales.
“Our same-store sales were impacted by a generally weak overall economy and competition within our markets in fiscal 2011,” the prospectus said, “similar to what we experienced in fiscal 2010.”
The company also said it expects to report income before income taxes of $78 million, a 1.6 percent decrease from 2010. The amended prospectus didn’t provide an estimate for after-tax net income.
Once the initial public offering is completed, the company’s name will change to Roundy’s Inc. The stock’s proposed trading symbol is “RNDY.”
