Gander Mountain sold 5.725 million shares of its common stock, and granted the underwriters a 30-day option to purchase up to an additional 858,750 shares at the initial public offering price to cover over-allotments. Assuming all shares are sold, the company would raise about $105 million, minus an estimated $12 million in fees.
Gander Mountain has 66 outdoor lifestyle stores in nine mostly Midwest states-- Illinois, Indiana, Iowa, Michigan, Minnesota, New York, Ohio, Pennsylvania and Wisconsin. The retailer, which is still majority owned by Minnesota-based Holiday, will use the proceeds of the offering to pay down debt and open more of its large-format--80,000-sf--stores.
The Erickson family, who own the company through their Holiday Cos. convenience store chain, owns the chain. The Erickson will retain majority control of the company even if all the offered shares are sold.
Banc of America Securities LLC, William Blair & Co. and Piper Jaffray & Co. managed the offering, which is expected to close Monday.
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