June 18, 2018

BJ's IPO could value company over $2B

Photo/Grant Welker
BJ's Wholesale Club headquarters in Westborough.

Westborough bulk retailer BJ's Wholesale Club said it is anticipating selling 37.5 million shares for between $15 and $17 in its initial public offering, a price valuing the company at over $2 billion.

The company filed additional paperwork Monday on its IPO, for which a date has not yet been set.

The company could raise as much as $733.1 million by going public. That per-share price range values the company between $1.9 billion and $2.14 billion.

BJ's filed to go public last month in a bid to again be listed on the New York Stock Exchange, as it was before it was brought private by CVC Capital Partners for $2.8 million in 2011.

According to the filing, the company has grown its net income in each of the last three fiscal years, from $24 million in 2016 to $50 million in 2018.

Also rising are incomes from membership fees, which grew to $258.6 million last year from $255.2 million the year before.

The company ended its fiscal 2018 with nearly $12.5 billion in sales, also a three-year high.

BJ's employs nearly 1,000 people locally, more than 3,700 across the state, and more than 25,000 in all, according to the Worcester Business Journal's Central Mass. 100 list of the area's largest employers.

If taken public, BJ's would be among the largest public companies based in Central Massachusetts, along with TJX Cos. and Staples of Framingham, and Boston Scientific of Marlborough.

The company currently operates 215 clubs and 134 BJ's gas locations in 16 states.

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