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Refresco Gerber seeks IPO at valuation of $1.1 billion to $1.3 billion-Reuters

(Reuters) – Refresco Gerber [REFGP.UL] aims to sell around 50 percent of the company through an initial public offering that would value its equity at 1.07 billion to 1.29 billion euros ($1.13 billion to $1.37 billion), the European bottler of drinks and juices said on Tuesday.

Rotterdam-based Refresco, which bottles Innocent Smoothies, Del Monte fruit juices and drinks for supermarket brands, will use part of the proceeds to pay debt, but most will go to current owners selling in a secondary offering.

It reported a net profit of 38.7 million euros on sales of 2.0 billion euros for 2014. It ended the year with equity worth 361 million euros and loans and borrowings of 684 million.

The IPO will consist of a primary offering that seeks to raise around 100 million euros to pay down debt, and a secondary offering worth at least 400 million euros, together representing 47.1 percent of outstanding shares after the IPO.

The indicative price range is 13 to 16 euros per share which would raise 502 million to 594 million euros.

With an overallotment option for secondary shares, the total amount on offer would rise to 54.2 percent of the company.

Refresco Gerber was created through a merger with British soft drink company Gerber Emig in 2013. Former Gerber owners hold a 27.5 percent stake in the merged entity.

Private equity firm 3i holds a 15 percent stake, a group of the company’s managers has 10 percent, and the balance is in the hands of an Icelandic consortium including Kaupthing Bank, FL Group and Vifilfell Bottling Group.