Sycamore Partners to buy US specialty retailer Hot Topic Inc for $600 mn
08 Mar 2013
Sycamore Partners, a specialist in consumer and retail investments, today agreed to acquire US mall and web-based specialty retailer Hot Topic Inc. for about $600 million.
The New York-based private equity firm will pay $14 per share, a 30-per cent premium to Hot Topic's closing price of $10.75 on the Nasdaq Stock Exchange yesterday.
The transaction requires a majority of the company's shareholders voting for the deal.
Hot Topic's CEO, Lisa Harper and Becker Drapkin Management LP, collectively holding an 8.9-per cent of the company's stock, have agreed to tender their shares to the offer.
Founded in 1988 by Orv Madden, Los Angeles-based Hot Topic Inc is a mall and web-based specialty retailer operating the Hot Topic and Torrid stores, as well as a new test retail concept, Blackheart.
Hot Topic offers music, pop culture-licensed and music, pop culture-influenced apparel, accessories, music and gift items for young men and women.
