CCMP’s Jamieson Wellness seeks $300 mln from IPO

Jamieson Wellness, a vitamin and natural health products company, priced its recently filed initial public offering in Canada.

The Windsor, Ontario, company plans to raise $300 million from an expected sale of common shares at $14 to $16 per unit, the updated prospectus shows. The number of shares to be distributed was not disclosed.

Founded in 1922, Jamieson manufactures a line of branded vitamins, minerals and supplements products, sports nutrition products and certain over-the-counter remedies.

The business was family-owned before being acquired by U.S. private equity firm CCMP Capital Advisors in 2014 for more than $300 million.

Jamieson, which reported pro forma revenue of $297 million for 2016, says it has a 25 percent share in its domestic space. It aims to achieve total revenue of $390 million to $410 million as part of a five-year global strategy, which includes further penetration of China’s VMS market.

While backed by CCMP, Jamieson completed several add-ons, including its 2014 buy of Lorna Vanderhaeghe Health Solutions. Earlier this year, it bought Body Plus and Sonoma.

Jamieson plans to use its share of the issue’s proceeds to repay a portion of debt outstanding.

The IPO will include a secondary sale by CCMP. Upon its completion, the New York investor will remain a shareholder, with an interest of about 46 percent. The stake will be reduced to 38 percent if the greenshoe option is exercised in full.

Last year, Reuters reported CCMP was looking to sell Jamieson for as much as US$700 million.

Jamieson will list on the Toronto Stock Exchange. The offering is being made through a syndicate of underwriters led by BMO Capital Markets and RBC Capital Markets.

Jamieson is one of nine Canadian private-equity- or venture-backed companies to announce or complete a public sale since January, contributing to a much frothier domestic IPO market this year as compared with 2016.

Completed issues include the March raise of luxury-outdoor-apparel maker Canada Goose, a portfolio company of Bain Capital, which collected $390 million.

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