Wayne Farms, integrated poultry company with a large complex in Danville, withdrew its planned initial public offering that had hoped to raise $250 million. The Oakwood, Ga.,-based company cited unfavorable market conditions that prevented the company from getting the appropriate valuation.
Earlier this month, the company said it planned to offer 12.8 million shares at a price range of $18 to $21, according to filings with the Securities and Exchange Commission.
“Although we are disappointed, the current overall market conditions are not favorable for the company to receive an appropriate valuation at this time. We are committed to executing our business plan and have the financial strength to make this plan a reality,” Wayne Farms Chief Financial Officer Courtney Fazekas notes in a media statement Friday (June 26). “Wayne Farms management continues to enjoy the strong support and access to the resources of Continental Grain (parent). We believe that our decision to withdraw the IPO will not impact our ability to meet our growth objectives."
With annual sales exceeding $1.9 billion, Wayne Farms owns and operates 11 fresh and further-processed facilities throughout the Southeast, produces more than 2.6 billion pounds of poultry products each year, and employs more than 8,900 individuals.
In Arkansas the company employs 823 at its deboning plant in Danville. There are another 122 contracted growers in Scott, Yell, Logan, Pope and Perry counties.
The company had planned to use the net proceeds of the IPO to repay existing debt, for working capital and general corporate purposes and to make a distribution to Continental Grain.