REFILE-CCMP buys into Ollie's Bargain Outlet

Tue Aug 28, 2012 6:02pm EDT

By Olivia Oran

Aug 28 (Reuters) - Closeout retailer Ollie's Bargain Outlet, known for its signature catch phrase "good stuff cheap," said on Tuesday that private equity firm CCMP Capital Advisors LLC would acquire a stake in the company alongside current management.

CCMP and Ollie's management will acquire an interest in the company from SKM Equity Fund III, a $720 million private equity fund launched in 2000 by Saunders, Karp & Megrue, a New York-based buyout firm that merged with Apax Partners LLP in 2005.

Terms of the deal as well as the size of the equity stake were not disclosed, although sources familiar with the transaction have pegged its value at around $500 million. Ollie's had an enterprise value of just $65 million when SKM bought it in 2003, according to another source familiar with the matter.

Mark Butler, Ollie's co-founder, will remain as chairman and chief executive, and be the company's largest individual investor.

Shares of deep discount retailers like Dollar Tree Inc , Family Dollar Stores Inc and Dollar General Corp have all risen this year as consumers look for ways to save money on everyday goods.

Teen discount retailer Five Below Inc also saw shares rise as much as 65 percent following its market debut in July in which it raised $163.2 million.

Ollie's, Based in Harrisburg, Pennsylvania, has 124 retail stores across 13 states that sell excess inventory like housewares, sporting goods and toys.

Jefferies & Co Inc served as the financial adviser for Ollie's on the deal.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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