By Olivia Oran
Aug 28 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
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
Mark Butler, Ollie's co-founder, will remain as chairman and
chief executive, and be the company's largest individual
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.