Ingram Micro Stockholder Launches 11 Million-Share Offering

Ingram Micro announced Nov. 2 that its principal stockholder, Ingram Holdco, LLC, launched an 11 million-share secondary offering alongside the company’s intended repurchase of one million shares.

Ingram Holdco, an affiliate of Platinum Equity, will receive all net proceeds from the offering. Ingram Micro is not selling shares and will receive no proceeds. Any proceeds from a sale of additional shares under the option would also go to Ingram Holdco.

Goldman Sachs & Co. LLC is the sole underwriter. Ingram Holdco expects to grant Goldman Sachs a 30-day option to buy about 1.65 million more shares at the public offering price, with underwriting discounts and commissions deducted. No offering price or expected closing date was provided.

Ingram Micro intends to authorize a repurchase of one million shares from Goldman Sachs at the per-share price the underwriter agrees to pay Ingram Holdco. The company expects to use cash on hand and complete the purchase when the offering closes. The repurchase is subject, among other conditions, to the offering closing; the offering can close even if the repurchase does not.

The offering is being made under Ingram Micro’s effective automatic shelf registration on Form S-3, through a prospectus supplement and accompanying prospectus. In September, Ingram Holdco offered 13.125 million shares at $27.25 each, and Ingram Micro repurchased 625,000 shares in that transaction.