Industry, Calif. — Sycamore Partners has reached a definitive agreement to acquire Hot Topic in a $600 million deal that will take the teen apparel retailer private.
Industry, Calif. — Sycamore Partners has reached a definitive agreement to acquire Hot Topic in a $600 million deal that will take the teen apparel retailer private. Under the terms of the deal, Sycamore would acquire Hot Topic for $14 per share in cash then operate the company privately.
The deal has been unanimously approved by Hot Topic’s board of directors. The sale price represents a 30 percent premium over Hot Topic’s stock price on March 6 — the day the deal was announced. Sycamore acquired women’s apparel retailer Talbots last year for $193.3 million. According to an MSN article, Sycamore is currently in talks to acquire Australian surfwear company Billabong for $586.6 million.
SOURCE: Hot Topic