Maker of Reynolds Wrap and Hefty Goes Public
On January 30, 2020, Reynolds Consumer Products Inc. announced the pricing of the initial public offering of 47,170,000 shares of its common stock at a price to the public of $26.00 per share. In addition, the Company granted the underwriters a 30-day option to purchase up to 7,075,500 additional shares of common stock at the public offering price, less underwriting discounts and commissions. The shares of common stock began trading on the Nasdaq Global Select Market on January 31, 2020 under the ticker symbol “REYN.” The offering is expected to close on February 4, 2020, subject to customary closing conditions.
The Illinois-based manufacturer of consumer products including Reynolds Wrap aluminum foil and Hefty trash bags, sells its brands across well-known mass merchant and retail stores, as well as online.
“E-commerce penetration is expected to increase, due to the convenience of online ordering and subscription delivery, particularly for easy-to-ship household product categories,” the prospectus said. “Furthering our e-commerce strategy, we recently launched a full line of store brand aluminum foil, trash bags and food storage bags as the exclusive supplier to the e-commerce leaders.”
The company operates in four categories including:
- Reynolds Cooking & Baking
- Hefty Waste & Storage
- Hefty Tableware
- Presto products
The company also recorded a net income of $135M on revenue of $2.20B over the nine months ended Sept. 30, compared with net income of $92M on revenue of $2.24B in the same period a year ago.