| International Home Foods, Inc. | |||
| Ticker: | IHF | 1633 Littleton Road | |
| Exchange: | New York Stock Exchange | Parsippany, NJ 07054 | |
| Industry: | Manufacturing (SIC Code 2032) | (201) 359-9920 | |
| # of Employees: | 6400 | ||
| Type of Shares: | Common Shares | Filing Date: | 9/24/97 | |
| U.S. Shares: | 10,898,500 | Offer Date: | 11/18/97 | |
| Non-U.S. Shares: | 2,724,500 | Filing Range: | $18.00 - $20.00 | |
| Primary Shares: | 10,526,859 | Offer Price: | $20.00 | |
| Secondary Shares: | 3,096,141 | Gross Spread: | $1.20 | |
| Offering Amount: | $258,837,000 | Selling: | $0.72 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Donaldson, Lufkin & Jenrette Securities Corp. | Lead Manager | (212) 371-0641 |
| BT Alex Brown | Co-manager | (410) 727-1700 |
| Chase Securities, Inc. | Co-manager | (212) 834-4533 |
| CS First Boston | Co-manager | (212) 325-2000 |
| Goldman, Sachs & Co. | Co-manager | (212) 902-5959 |
| Morgan Stanley Dean Witter Discover & Co. | Co-manager | (212) 761-5900 |
| Issuer's Law Firm: | Vinson & Elkins |
| Bank's Law Firm: | Akin, Gump, Strauss, Hauer & Feld |
| Auditor: | Coopers & Lybrand |
| Registrar/Transfer Agent: | Harris Trust & Savings Bank |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 6/30/97 | 6/30/96 | 6/30/97 | ||
| Revenue: | $942.79 | $494.42 | $449.30 | Assets: | $962.29 |
| Net Income: | $82.96 | $16.90 | $43.59 | Curr Assets: | $255.02 |
| EPS: | $0.25 | $0.05 | Liabilities: | $1,209.69 | |
| Prior EPS: | $68.61 | $80.43 | Curr Liabilities: | $163.15 | |
| Cash Flow/Oper: | $145.95 | -$31.95 | -$75.53 | Equity: | -$247.40 |
| Cash Flow/Fin: | -$59.05 | -$7.97 | -$4.90 | Cash: | $74.55 |
| Cash Flow/Inv: | -$41.04 | -$7.97 | Working Cap: | $91.87 | |
| Business Description |
| The company is a leading manufacturer and marketer of a diversified, well-established portfolio of shelf-stable food products with popular brand names, including Chef Boyardee prepared foods, Bumble Bee premium canned seafood and Pam cooking spray, etc. In the United States, 11 of the Company's 14 principal branded product lines command the number one position in their defined markets. For the fiscal year ended December 31, 1996, these 11 branded product lines accounted for $863.2 million or 58.3% of the Company's aggregate net sales. Many of the Company's brands also command leading market positions in Canada, Mexico and Puerto Rico. The Company's portfolio of leading brands provides the Company with a strong presence in the United States as well as an attractive platform for continued international expansion, particularly in Latin America. The Company's brand name business is complemented by growing food service and private label businesses and sales to the U.S. military. |
| Competition |
| The food products business is highly competitive. Numerous brands and products compete for shelf space and sales, with competition based primarily on brand recognition and loyalty, price, quality and convenience. The Company competes with a significant number of companies of varying sizes, including divisions or subsidiaries of larger companies. A number of these competitors have broader product lines as well as substantially greater financial and other resources available to them and lower fixed costs, and there can be no assurance that the Company can compete successfully with such other companies. In addition, many of the Company's competitors may be substantially less leveraged. Competitive pressures or other factors could cause the Company's products to lose market share or result in significant price erosion, which could have a material adverse effect on the Company. |
| Business Plan |
| The company's objectives are to increase sales and earnings by (I) growing sales of existing brands through expansion of the company's product offerings and refocused marketing efforts, (ii) expanding distribution in food service, private label and international markets, (iii) completing strategic acquisitions and (iv) continuing to achieve cost savings. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for the redemption of the company's 10.375% Senior Subordinated Notes due 2006, to repay indebtedness under the company's 1997 stock option plan and general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| William J. Feeney | 67.60% | |
| Hicks Muse Parties | 37.70% | |
| American Home Products Parties | 18.90% | |
| Five Giralda Farms | 5.70% | |
| C. Dean Metropoulos | 5.40% |
| Officer Name | Title | Age |
| C. Dean Metropoulos | Chairman of the Board and Chief Executive Officer | 50 |
| William J Feeney | Executive Vice President | 45 |
| John H. Bess | President and Chief Operating Officer | 45 |
| Christopher J. Guida | Senior Vice President -- Grocery Field Sales | 36 |
| Stephen Van Tassell | Senior Vice President -- Snack Foods | 41 |
| N. Michael Dion | Senior Vice President and Chief Financial Officer | 40 |
| M. Kelley Maggs | Senior Vice President and General Counel | 45 |
| Michael Larney | Senior Vice President and General Manager -- Chef Boyardee | 40 |
| Frank Valdez | Senior Vice President and General Manager -- Operations | 46 |
| Gerry Lopez | Senior Vice President and General Manager -- Southwester Cuisine | 38 |
| John Sottile | Senior Vice President and General Manager -- Specialty Brands | 43 |
| Albert J Soricelli, Jr. | Senior Vice President of New Ventures and International | 43 |
| Lynne M. Misericordia | Treasurer | 34 |