Armor All Products Corp. of Irvine, a subsidiary of San Francisco-based McKesson Corp., has filed with the Securities and Exchange Commission for a proposed public offering of 3.5 million shares of common stock. The company hopes to raise as much as $49 million from the offering.
The offering will represent 16.7% of the common stock of Armor All. The remaining 83.3% of the stock--17.4 million shares--will be retained by McKesson.
The stock is expected to sell initially at $12 to $14 per share, the company said. The offering is being underwritten by Morgan, Stanley & Co. Inc. of New York.
A portion of the proceeds from the offering will be used to repay a loan Armor All took out in order to pay a $15-million dividend to McKesson next month. The remainder of the proceeds will be used to replenish working capital, according to the registration statement filed Friday with the SEC.