$OLLI pps@25.17..Private-equity firm CCMP Capital Advisors got a good deal in its 2014 buyout of Ollie's Bargain Outlet Holdings Inc.
The New York firm sold its remaining stake in Ollie's in a $358 million stock offering this week, capping a 2.7-times return on its investment, or an annual return of 35% before fees, according to an investor letter obtained by The Wall Street Journal.
Harrisburg, Penn.-based Ollie's, known for its catch-phrase "Good Stuff Cheap," operates about 216 stores selling other consumer companies' excess inventory and "salvage" merchandise--such as undamaged inventory from businesses that suffered fires or flooding. The company has posted double-digit gains in sales and profits as of late, helped by a growing footprint and increasing revenue at existing stores.
As a result, Ollie's has seen its shares gain 57% since its July 2015 initial public offering, making it one of the better-performing retail stocks in that timeframe.
CCMP, founded by executives from J.P. Morgan Chase & Co.'s former private-equity arm, is known for consumer-sector bets. Since its 2006 founding it has backed food-services company Aramark and outdoor retailer Cabela's Inc., among others.
Since the financial crisis, the firm has scored with bets on value-conscious consumers, such as retailer Francesca's Holdings Corp. and British low-cost fitness chain PureGym Ltd.
(END) Dow Jones Newswires
September 09, 2016 15:30 ET (19:30 GMT)
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