CCMP to make 2.7x its money with Ollie’s Bargain Outlet exit: LP letter

CCMP Capital Advisors LLC has exited its investment in Ollie’s Bargain Outlet Holdings Inc after four years and is making 2.7x its money on the deal, according to a limited-partner letter obtained by Buyouts.

CCMP on Sept. 12 sold its remaining 22.8 percent stake in Ollie’s, an SEC filing said. The PE firm made $358 million from selling 13.7 million Ollie’s shares through the secondary, the letter said.

Ollie’s, Harrisburg, Pennsylvania, sells brand-name merchandise, such as housewares, food, books and toys, at reduced prices. (Ollie’s signature catch phrase: “Good stuff cheap.”) The company opened its first store in 1982 and currently has 216 Ollie’s Bargain Outlets across 19 states.

In September 2012, CCMP invested $344 million in Ollie’s, the letter said. The firm used its second fund, which collected $3.4 billion in 2007, to invest in Ollie’s. The transaction is generating a 35 percent gross IRR for CCMP II, the letter said.

CCMP has since raised a third pool, which closed at $3.6 billion in 2014.

Ollie’s went public in July 2015. The company priced its shares at $16 each and the stock surged more than 40 percent to close at $21.15 on its first day of trading. Ollie’s shares closed at $25.23 on Sept. 13.

CCMP did not sell stock into the Ollie’s IPO. The firm owned 34.6 million shares, or 59.2 percent, of Ollie’s after the offering, an SEC filing said.

CCMP has been offloading Ollie’s stock this year. It made about $500 million through two secondaries, including selling 7.87 million shares at $19.75 each in February and another 13.975 million at $25 each in June, SEC filings said.

Ollie’s has paid dividends, including $48.8 million in May 2015 and $58 million in 2014, according to a regulatory filing.

Executives for Ollie’s couldn’t be reached for comment.

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