Source: Lisa M. Keefe, MEATINGPLACE, 3/17/15


Wayne Farms, a unit of Continental Grain Co. and the sixth-largest poultry processor in the United States, has filed for an initial public offering and expects to raise about $100 million in the markets, according to documents filed with the federal Securities & Exchange Commission.

The prospectus does not mention a date for offering the shares, but says the sale to the public will begin “as soon as practicable ….”
Wayne Farms also notes in its filing that expanding business with one of its customers may give Wayne Farms a reason to double the capacity of one of its existing plants “in the near term.”

“[R]ecently, one of our larger customers, a recognized leader in their segment, approached us about substantially expanding our supply to that customer. We have developed a multi-year expansion plan with that customer that will include doubling one of our existing plants in the near term and the potential for further expansion in the future,” the filing said. Also, “We have identified opportunities to lower our feed costs through consolidation and expansion of feed mills, which will also allow us to take advantage of capacity expansion opportunities.”

As part of the IPO process, Wayne Farms created a new Delaware corporation, Wayne Farms Inc., which will actually launch the IPO. Wayne Farms Inc. then will retain partial ownership of Wayne Farms LLC, the operating entity. Continental Grain, meanwhile, will retain a controlling interest in Wayne Farms Inc. as well as a direct ownership interest in the operating corporation.

In pro forma financial results, Wayne Farms reported a 6.6 percent increase in net sales for the nine months ended in December 2014, to $1.7 billion. Net profit surged 74 percent for the period, to $174 million from $100 million for the same period in 2013.

In its prospectus, Wayne Farms describes itself as offering “deboned, value-added marinated, breaded, cooked and individually frozen products, both fresh and further processed, to our customers through national and international distribution channels.” Its customers include Sysco, Costco, Boar’s Head, Chick-fil-A and Jack in the Box.

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