CCMP Capital filed paperwork Monday for an initial public offering of Ollie's Bargain Outlet Holdings Ltd., a Pennsylvania-based discount retailer it acquired in 2012 that plans to open 25 to 30 new stores in fiscal 2015.
Ollie's S1 registration statement indicates it plans to sell $150 million worth of stock, although that number is likely to change by the time of any initial public offering, or IPO. J.P. Morgan, Jefferies and BofA Merrill Lynch are serving as joint lead book-running managers and as representatives of the underwriters for the proposed offering. Credit Suisse, Piper Jaffray, KeyBanc Capital Markets and RBC Capital Markets are acting as joint book-running managers for the proposed offering.
According to the S1, Ollie's grew from 95 stores in fiscal 2010 to 176 in fiscal 2014, when the company's sales reached $638.0 million.
In fiscal 2014, comparable store sales increased 4.4 percent to $526.9 million. Adjusted EBITDA increased from $43.7 million to $80.3 million, a CAGR of 16.0%. Net income increased from $19.1 million to $26.9 million.
Nearly a third of the company's sales come from “Other categories,” which includes electronics, personal health care, candy, clothing, sporting goods, pet products, luggage, automotive, seasonal, furniture, summer furniture and lawn & garden.
“Ollie’s is a highly differentiated and fast-growing, extreme value retailer of brand name merchandise at drastically reduced prices. Known for our assortment of “Good Stuff Cheap,” we offer customers a broad selection of brand name products,” reads the S1.
The company believes it can grow to as many as 950 stores.
“Our new store real estate model is flexible and focuses predominately on second generation sites ranging in size from 25,000 to 35,000 square feet,” reads the company's registration statement. “We believe there is an ample supply of suitable low-cost, second generation real estate to allow us to infill within our existing markets as well as to expand into new, contiguous geographies.”
Among the two independent driectors serving on Ollie's board is Thomas Hendrickson, who joined the board a month after retiring as Executive Vice President, Chief Financial Officer, Chief Administrative Officer and Treasurer for Sports Authority in March 2015. Prior to joining Sports Authority, Hendrickson was the Executive Vice President, Chief Financial Officer and Chief Administrative Officer for Gart Sports from January 1998 until the time of its merger with Sports Authority in August 2003. Hendrickson is currently a member of the audit committee of the Board of Directors of O’Reilly Automotive, Inc.
