Teen Retailer Hot Topic Goes Private
The deal is structured as a one-step merger and Hot Topic will be the surviving entity. The deal is subject to shareholder and regulatory approval. Last May Sycamore acquired Talbot’s in a deal worth about $369 million.
Lisa Harper, Hot Topic’s CEO, said:
We are pleased that this transaction will allow us to deliver positive results for our shareholders. 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.
Harper and Becker Draper Management LP hold 8.9% of Hot Topic’s stock and have already agreed to support the transaction.
Shares of Hot Topic are up 29.2% at $13.49 after setting a new 52-week high of $13.95 earlier. The prior 52-week range was $8.25 to $11.82.