Here's how BJ's plans to keep growing
BJ's Wholesale Club is looking to raise some cash for its next phase of growth.
The owners of BJ's, Leonard Green & Partners LP and CVC Capital Partners Ltd., filed papers on Thursday to take the company public. The private equity firms expect to raise at least $400 million in an IPO that could value the company between $2 billion and $3 billion, according to The Wall Street Journal.
The warehouse retailer is going public again after continuing to attract shoppers with its private label assortment, digital apps and full-service deli. The company has doubled its profit over the past three years, has steadily increased its membership rolls and avoided store closures.
BJ's was publicly traded until 2011, when the private equity firms bought it in a deal valued at $2.8 billion.
Currently BJ's has more than 5 million members paying for either the base $55 annual fee or for the $110 BJ's Per Rewards Membership. Like Costco or Sam's Club, the company also sells its own private label brands. In fiscal year 2017, the company generated $12.8 billion in revenue.
Also on Thursday, BJ's announced that Christopher J. Baldwin, President and Chief Executive Officer, has added Chairman of the Board of Directors to his responsibilities, effective immediately.
Laura Sen has announced her retirement from the Board. The company also announced that Nishad Chande has joined the Board of Directors.
"I'm pleased to be named Chairman of the Board and to continue leading our team through the next stage of our transformation," Baldwin said. "Most importantly, I want to thank Laura for her countless contributions to BJ's Wholesale Club over her more than 25 years with the company. Her leadership, vision and commitment to BJ's have created the foundation for our long-term success."
Baldwin joined BJ's in 2015 as Chief Operating Officer and became President and Chief Executive Officer in 2016. He has more than 30 years of experience as an executive in the retail and consumer products industries. Before joining BJ's, he was CEO of Hess Retail Corporation, prior to its successful sale to Marathon Petroleum Corporation. Before joining Hess, Baldwin served in a variety of executive level roles at Kraft Foods (Nabisco), The Hershey Company and Procter & Gamble. Baldwin also serves as Chairman of the National Retail Federation (NRF) Board of Directors.
Chande is a Senior Managing Director at CVC Capital Partners, where he is a member of the Consumer/Retail team. Prior to joining CVC in 2016, Chande worked at Centre Partners. He also has experience at Bain & Company, Raymond James Capital and Schroders. He holds an MBA from the Wharton School at the University of Pennsylvania and a B.A. in Economics and Mathematics from Dartmouth College.
Headquartered in Westborough, Mass., BJ's Wholesale Club Holdings, Inc. is the leading operator of membership warehouse clubs in the Eastern United States. The company currently operates 215 clubs and 134 BJ's Gas locations in 16 states.