Sycamore Partners has completed its previously announced acquisition of Hot Topic, a specialty retailer, for $14 per share in cash or a total of approximately $600 million.
Hot Topic 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).
“Hot Topic and Torrid are both leaders in their categories, and we are excited to have both brands as part of our portfolio,” said Stefan Kaluzny, Managing Director of Sycamore Partners. “Sycamore Partners is very pleased to have the opportunity to partner with Lisa Harper and her team to invest in the continued development of both the Hot Topic and Torrid retail brands.”
Sycamore Partners invests in consumer and retail companies. The firm has more than $1 billion of capital under management and is based in New York (www.sycamorepartners.com).
“We are very happy to partner with Sycamore Partners. Their knowledge and expertise in the consumer and retail markets is precisely what we need to optimize both the Hot Topic and Torrid brands,” said Lisa Harper, Chief Executive Officer and Chairman of the Board of Hot Topic.
© 2013 PEPD • Private Equity’s Leading News Magazine • 6-13-13
