BWAY Holding, a portfolio company of New York private equity firm Kelso & Company, today went public at $15 per share in a roughly $150 million offering.
The valuation was lower than expected and more than 1 million shares less than originally planned. SEC documents originally put the expected IPO in the $16 to $18 range.
BWAY Holding, based in Atlanta, makes metal and plastic containers such as buckets.
Kelso originally took the company private in 2003 for roughly $174 million. Including assumed debt, the transaction was worth roughly $330 million.
Prior to today’s IPO, Kelso owned 85.8 percent of the company. The firm now owns 39.4 percent of BWAY, according to a filing. Kelso is the only selling shareholder in the offering.
Filings revealed that Kelso had been paid an annual “advisory fee” of $495,000 by BWAY, and that with the IPO, the company will pay the private equity firm a one-time termination fee of $5 million.
Goldman Sachs and Banc of America Securities are underwriters of the BWAY offering.
At press time BWAY was trading at $14.69 per share.