Ronco, the TV infomercial king, offers ‘mini-IPO’
Ronco, the kitschy company known for its quirky gadgets and late-night infomercials for products such as the Veg-o-Matic, is offering consumers the chance to buy shares in the company.
The Austin-based company is seeking to raise $30 million with the help of the shoppers through an initial public offering. In the process, it is appealing to fans who have kept it in business for 53 years by scooping up gadgets ranging from the Popeil Pocket Fisherman, a compact rod-and-reel, to the iconic Veg-o-Matic, which chops or minces vegetables. With founder Ron Popeil as its TV pitchman, the company has sold many interesting, often unusual, items over the years.
Among those mentioned on Popeil’s website are Mr. Microphone, the Buttoneer, the Smokeless Ashtray, Popeil’s Electric Food Dehydrator, the Inside-the-Eggshell egg scrambler, GLH-9 (Great Looking Hair Formula #9) Hair-in-Can spray, the Ronco Electric Food Dehydrator and the Showtime Rotisserie and BBQ.
As an informercial master, Popeil would lead the crowd in chanting slogans for his products aimed at driving home sales points. For instance, for the rotisserie, it was “set it and forget it.”
Ronco is calling its offering a “mini-IPO’’ that taps into a federal provision that permits shares to be sold to the general public, not just institutional buyers. Would-be investors can grab a chunk of Ronco for as little as $6 a share, with a minimum purchase of 20 shares.
Staying true to its deal-orient- ed roots, Ronco will throw in extras based on how much shareholders invest. Those who spend up to $1,000 on shares get a one-time discount of 10% on products offered on Ronco.com. Those who invest more than $1,000 get 20% off products. At $5,000, investors get the 20% plus a free rotisserie.
“We’re proud of our legacy and our reputation for providing American families with one of the most trusted and established lifestyle brands in our space,” Bill Moore, Ronco Brands’ CEO, said in a statement.