Ollie’s owners ready to reduce interest in outlet chain

The majority owner of Ollie’s Bargain Outlet is looking to reduce its stake in the company following a holiday season sales performance CEO Mark Butler characterized as thrilling.



Ollie’s Bargain Outlet announced plans for a secondary stock offering of 6.5 million shares, or roughly 11% of the company’s outstanding shares, that won’t result in any proceeds to the company. That’s because the selling shareholder is CCMP Capital and the private equity firm is looking to reduce its ownership of the 203 store chain that currently stands at about 59%.



Upon completion of the offering, CCMP will own approximately 50.5% of Ollie’s shares, but that figure could drop to 48.8% if underwriters of the offering agree to purchase an additional 975,000 shares of Ollie’s from CCMP.



The planned offering comes on the heels of a solid performance during the holiday season. On Jan. 11, Ollie’s preannounced that same store sales for the nine week period ended Jan. 2, increased 5.6% and it increased its full year profit forecast.



“We are thrilled with our holiday sales results and the trends in the business over the past few months. Everyone across the Ollie’s team, from buying, distribution, store operations and the field personnel, did a phenomenal job executing the business and delivering popular branded products at exceptional closeout prices,” Ollie’s chairman, president and CEO Mark Butler said at the time. “We are excited by the strong results and momentum of the business heading into a new fiscal year.”



Ollie’s went public last July when it sold nearly 10.3 million shares at $16 apiece, generating proceeds of $153 million that were used to repay debt.



Ollie’s was acquired by CCMP in September 2012.