Closeout retailer Ollie’s selects banks for IPO, say sources-Reuters

(Reuters) – Deep-discount retailer Ollie’s Bargain Outlet, known for the signature catch phrase “good stuff cheap,” is preparing for an initial public offering, according to people familiar with the matter.

The Harrisburg, Pennsylvania-based company, which is owned by Chief Executive Officer Mark Butler and private equity firm CCMP Capital Advisors LLC, is working with investment banks JPMorgan Chase & CO, Bank of America Corp and Jefferies LLC on a potential IPO, which is expected later this year, the people said.

The people requested anonymity because the matter is private. Ollie’s could not be immediately reached for comment. CCMP, JPMorgan, Bank of America and Jefferies declined to comment.

Founded in 1982, Ollie’s has 176 retail stores across the United States. The stores sell excess inventory and salvage merchandise like housewares, sporting goods and toys from manufacturers who make too much of an item or change their packaging.

CCMP and Ollie’s management acquired their stake in 2012 in a deal that valued the company at about $700 million, according to Moody’s.
Discount retailer Dollar Tree Inc sold its ownership stake in Ollie’s in 2012.

If Ollie’s goes public, it would join a number of other U.S. retail companies eyeing IPOs this year, including party goods chain Party City and crafts marketplace Etsy