Snapple Plans IPO as Market Shows Life
Amid reviving interest in initial public offerings--well, some of them, anyway--the owners of Snapple Beverage plan to take the company public.
New York-based Triarc Cos., which bought Snapple from Quaker Oats for $300 million in 1997, said it hopes to raise $115 million by selling a portion of its shares in the maker of bottled iced tea and juice drinks.
Headed by financiers Nelson Peltz and Peter May, Triarc took Snapple off Quaker’s hands after a disastrous 2 1/2 years: Quaker had paid $1.7 billion for Snapple in December 1994 only to see the company’s sales slide.
Triarc revived the business with new products. Triarc’s beverage unit, including Snapple, Diet Rite cola and other brands, had sales of $772 million last year.
Triarc said it expects to sell Snapple shares in the third quarter, though the number of shares and the offering price weren’t detailed. Triarc expects to list Snapple on the New York Stock Exchange.
Triarc shares (ticker symbol: TRY) rose 75 cents to $20.38 on the NYSE on Tuesday.
Snapple was public in 1993 and ‘94, before Quaker bought it. The stock peaked at about $30 a share. Quaker paid $14 a share--and even that turned out to be too much.
Triarc’s IPO hopes may be buoyed by the hot reception for several IPOs in recent days. On Tuesday, computer circuit maker Marvell Technology (MRVL) soared from an offering price of $15 to close at $56.63 on Nasdaq, a 277% first-day gain and the biggest for any IPO since March.
Among other IPOs Tuesday, telecom components maker Stratos Lightwave (STLW) jumped from $21 to $34.13, and Internet software firm Click Commerce (CKCM) rose from $10 to $17.63.
