Natural Grocers by Vitamin Cottage Inc. on Monday filed to raise as much as $115 million through an initial public offering, the Denver Business Journal reports.
The family-owned company, which started in the 1950s by Margaret and Philip Isley, is now run by the second generation of the Isley family. Natural Grocers by Vitamin Cottage has 54 stores in 10 states.
As part of the IPO, Natural Grocers by Vitamin Cottage will buy out the minority owners of Boulder Vitamin Cottage Group LLC, which owns five of the stores in Colorado, using cash and stock.
The price paid for their 45 percent stake in Boulder Vitamin Cottage will depend upon the IPO price.
Natural Grocers by Vitamin Cottage, which ends its fiscal year on Sept. 30, opened 10 stores in the past year.
The company has opened five stores so far this year and intends to open five more during the current fiscal year.
Natural Grocers by Vitamin Cottage reported net income for the six months ended March 31 rose to $4 million from $2.2 million from the same period a year earlier. Net sales rose to $159.7 million from $126.8 million during that same period.
Natural Grocers by Vitamin Cottage said it intends to use the net proceeds from the IPO to repay its $16 million term loan and $9.5 million owed under a revolving credit facility.
The company also said it would use some of the money to pay the cash portion of the Boulder Vitamin Cottage Group deal and also for general corporate purposes.
Kemper Isley and his brother Zephyr Isley took over running the company in 1998 and the two share the title of co-president.
Their sister, Heather Isley, is EVP and corporate secretary. Their former sister-in-law, Elizabeth Isley, also is an EVP, the Journal reports.
The four Isleys are all directors of the company.