Hot Topic and Sycamore Partners have entered into an agreement for Sycamore Partners to acquire Hot Topic for $14.00 per share in cash, or a total of approximately $600 million. The agreement, which has been unanimously approved by Hot Topic’s Board of Directors, represents a premium of approximately 30% over Hot Topic’s closing stock price on March 6, 2013.
“We are excited to partner with the Hot Topic management team and all of its talented and passionate employees,” said Stefan Kaluzny, Managing Director of Sycamore Partners. “We look forward to supporting the company’s continued growth.”
Guggenheim Securities is acting as financial advisor to Hot Topic in connection with the transaction. BofA Merrill Lynch is acting as financial advisor to Sycamore Partners and Winston & Strawn and the Law Offices of Gary M. Holihan, P.C. are acting as its legal counsel.
Hot Topic (NASDAQ: HOTT) is a mall and web based specialty retailer operating the Hot Topic and Torrid concepts, 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. Torrid retails on-trend fashion apparel, lingerie and accessories inspired by and designed to fit the young woman who wears size 12 and up. Blackheart offers an expanded collection of dark and edgy lingerie, accessories and beauty products. The company operates 618 Hot Topic stores in all 50 states, Puerto Rico and Canada, 190 Torrid stores, 5 Blackheart stores, and Internet stores. Hot Topic is based in City of Industry, CA (www.hottopic.com) (www.torrid.com) and (www.blackheartlingerie.com).
Sycamore Partners is a private equity firm based in New York specializing in consumer and retail investments. The firm has more than $1 billion of capital under management (www.sycamorepartners.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 3-8-13