This holiday season, millions of American households will use Reynolds kitchen supplies, just in time for the company’s IPO.
Reynolds Consumer Products (REYN) is expected to go public before year-end in a deal we estimate could raise over $1 billion. A December offering would bring Reynolds to market at both the height of the holiday season and its seasonally strong 4Q. In the 4Q18, revenue jumped 17% over the 3Q18, and represented 29% of annual sales.
For more information on Reynolds' upcoming IPO, sign up for IPO Pro.
Reynolds’ portfolio of leading brands includes Reynolds Wrap, Reynolds KITCHENS, Hefty, Presto, and ALCAN, as well as store brand products. The company manages its operations in four major segments: Reynolds Cooking & Baking (37% of FY18 revenue), Hefty Tableware (24%), Hefty Waste & Storage (22%), and Presto Products (17%).
Reynolds estimates that it has a presence in 95% of US households. Its brands have the #1 market share across virtually all of the company’s major product categories.
Reynolds was LBO’d by Rank Group, the buyout fund of New Zealand billionaire Graeme Hart, and plans to use IPO proceeds to pay down debt. During the nine months ended September 30, 2019, revenue declined 2% to $2.2 billion, and adjusted EBITDA increased 4% to $441 million (20% margin).
