Pin­na­cle sale ad­vances

The Pak Banker - - COMPANIES/BOSS -

Pin­na­cle Foods Inc. (PF), the Black­stone Group LP-owned maker of Hun­gry-Man din­ners and Dun­can Hines cake mixes, jumped in New York af­ter rais­ing $580 mil­lion in its ini­tial pub­lic of­fer­ing, which priced at the top end of the pro­posed range.

The stock rose 11 per­cent to $22.21 at the close. The Par­sip­pany, New Jersey-based com­pany yes­ter­day sold 29 mil­lion shares, equiv­a­lent to a 26 per­cent stake, for $20 each, af­ter of­fer­ing them for $18 to $20. The shares are listed on the New York Stock Ex­change un­der the sym­bol PF. Pin­na­cle, led by Chief Ex­ec­u­tive Of­fi­cer Robert Gam­gort, pro­ceeded with its IPO af­ter de­lay­ing it last year be­cause of slump­ing con­sumer sen­ti­ment, peo­ple fa­mil­iar with the sit­u­a­tion said at the time. Black­stone bought Pin­na­cle for $2.2 bil­lion about six years ago, and com­bined the com­pany with Birds Eye Foods Inc. in a $1.3 bil­lion ac­qui­si­tion in 2009.

"The food in­dus­try since the re­ces­sion has been chal­lenged on the top line be­cause of the pres­sure on the con­sumer," Gam­gort said in an in­ter­view to­day with a Tele­vi­sion.

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