Container Store Raises $225 Million Pricing IPO at Top of Range

Container Store Group Inc. (TCS), a retailer of storage and organization products, raised $225 million in its U.S. initial public offering, pricing the shares at the top of an increased range.

The retailer sold 12.5 million shares for $18 each, according to a statement today, equivalent to a 27 percent stake. It offered them for $17 to $18, after raising the range from $14 to $16 apiece yesterday. The shares will start trading tomorrow on the New York Stock Exchange under the symbol TCS.

Container Store, based in Coppell, Texas, is the only national retailer focused on storage and organization products. It posted more than $700 million in sales in the year ended March 2, according to a regulatory filing. The IPO is the second-largest for a retailer in the U.S. this year, after Bain Capital LLC’s Burlington Stores Inc. (BURL) raised $226.7 million earlier this month, according to data compiled by Bloomberg.

Leonard Green & Partners LP, the Los Angeles-based private-equity firm that bought Container Store in 2007 for an undisclosed amount, will hold about 60 percent of the retailer’s common shares after the offering, the prospectus shows.

At the offering price, Container Store is valued at about $828 million, data compiled by Bloomberg show. The company’s net loss narrowed to $130,000 in the year to March 2 as sales increased 12 percent, according to the filing.

Burlington Stores, known commonly under its coat factory brand, rose 47 percent on its first day of trading Oct. 2. The shares are up almost 60 percent since the IPO.

JPMorgan Chase & Co., Barclays Plc. and Credit Suisse Group AG led Container Store’s offering.

To contact the reporter on this story: Leslie Picker in New York at lpicker2@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net

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