Blue Buffalo's IPO Prices Above Expectations

Blue Buffalo Pet Products Inc. said its initial public offering of 33.8 million shares priced at $20 each, a price and size above estimates earlier this month.

The pet-food maker said on July 8 that an offering of 29.5 million shares was expected to price at $16 to $18.

The shares are being sold by current stockholders rather than the company itself. Blue Buffalo's owners include Invus LP, a New York-based investment firm that has been a backer since 2006.

Blue Buffalo spent nearly a year in confidential IPO registration before making its filing public in June.

The Wilton, Conn.-based company has been consistently profitable in recent years, as pet spending has been resilient among U.S. consumers. It has used marketing campaigns to persuade pet owners to avoid foods containing corn, meat byproducts and preservatives.

Pet food has become a lucrative area for deals, with J.M. Smucker Co. paying more than $3 billion in March for Milk-Bone and Kibbles 'n Bits owner Big Heart.

Blue Buffalo is slated to trade on Nasdaq under the symbol BUFF.

Write to Josh Beckerman at [e-mail]

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