Sycamore Partners, the private equity firm queued up as a major player in the upcoming purchase of brand giant Billabong, announced today a deal to purchase mall retail chain Hot Topic for $600 million, according to a New York Times story:
Under the terms of the deal, Hot Topic shareholders will receive $14 a share, about 30 percent above Wednesday’s closing price.
“We are pleased that this transaction will allow us to deliver positive results for our shareholders,” Lisa M. Harper, the company’s chairwoman and chief executive, said in a statement. “In addition, we are very excited about the future growth for the company and know that Sycamore Partners will provide great resources and expertise to us as we operate as a private company.”
Shares in the retailer have risen 22 percent in the last 12 months.
According to Billabong’s latest report, “Management presentations and site visits continue with the Sycamore and Altamont / VF consortia as part of the previously announced due diligence process, which is expected to conclude next month.” Stay tuned for more information as it breaks.