More reports on: M&A
Sycamore Partners to buy US specialty retailer Hot Topic Inc for $600 mn news
08 March 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.





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Sycamore Partners to buy US specialty retailer Hot Topic Inc for $600 mn