Aaron Bros. Art Marts, which operates a chain of stores selling picture frames and art supplies, said Thursday that it notified the Securities and Exchange Commission that it intends to sell shares to the public in late November.
The City of Commerce company, which is privately held by President and Chief Executive William L. McGavock and other members of management, will offer 1.2 million of its common shares at a price of $9 to $11 each. That would put 38% of the company's shares into the hands of shareholders other than those in the management group. Wedbush Noble Cooke is the managing underwriter.
Proceeds from the offering will be used to pay off some of the company's debt and to help finance new store openings. Aaron Bros., founded by Len and Al Aaron in 1946, operates 56 stores--38 in Southern California, 13 in Northern California, 3 in Phoenix and 2 in Las Vegas. Len Aaron is currently a member of the board of directors.
The brothers built the business into a successful chain with public shareholders. The company was taken private in October, 1977, when Chromalloy American Corp. purchased it. Aaron Bros. was later sold to the New York firm of Dyson-Kissner-Moran. McGavock, who has been president and chief executive since April, 1981, headed a group of investors that purchased the chain in September, 1985.
For the period Sept. 12, 1985, through Aug. 31, 1986--the period during which current managers were in control--Aaron Bros.' sales were $47.6 million. Operating income for the same period was $4.9 million and net income $1.5 million.