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BJ’s Wholesale Club launches IPO

Warehouse club chain begins trading today on NYSE

Russell Redman

June 28, 2018

2 Min Read

BJ’s Wholesale Club has made its return as a public company.

After filing for an initial public offering in mid-May, BJ's Wholesale Club Holdings Inc. yesterday announced an IPO of 37.5 million shares of common stock at $17 per share, raising $637.5 million.

Today, the warehouse club chain began trading under the ticker symbol “BJ” on the New York Stock Exchange. Shares opened up 25% at $21.25 per share, which published reports said valued the company at about $2.7 billion.

Westborough, Mass.-based BJ’s said it expects the IPO to close on July 2, pending customary closing conditions. The offering’s underwriters have been granted a 30-day option to buy up to an additional 5.625 million shares of common stock.

As of early afternoon trading on Thursday, BJ’s shares were at $21.46, with prices ranging from a low of $20.56 to a high of $23.01.

BJ’s has rejoined the stock market after a nearly seven-year absence. In September 2011, investment firms Leonard Green & Partners and CVS Capital Partners took the wholesale club private via a $2.8 billion buyout, which came after a year of speculation about a potential takeover of the chain. Holders of BJ’s common stock received $51.25 per share in cash under the deal.

At the time of the buyout, BJ’s operated 190 warehouse clubs in 15 states, primarily in the Northeast. The retailer currently has 215 stores, plus 134 fuel stations, in 16 states.

For its 2017 fiscal year ended Feb. 3, BJ’s reported sales of nearly $12.5 billion, up 3.3% year over year. Comparable-club sales, including fuel, inched up 0.8%. Net income totaled $50.3 million, up from $44.2 million a year earlier.

The day that BJ’s announced its IPO filing, the company said President and CEO Christopher Baldwin added the chairman’s title and that nonexecutive chairman Laura Sen was retiring from the board. Baldwin has served as president and CEO of BJ’s since February 2016, taking over from Sen, who held that role since February 2009. She became nonexecutive chairman when Baldwin was appointed CEO.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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