Sycamore Partners, the New York private equity firm that is partnering with Paul Naude on the Billabong bid, said today it is buying retailer Hot Topic.
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Sycamore is paying $14 per share or a total of $600 million, which is a 30% premium above the closing share price on March 6, according to Hot Topic. They plan to take the company private.
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The Hot Topic board voted unanimously in support of the sale, which still needs to be approved by shareholders.
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Sycamore has $1 billion under management and specializes in the consumer and retail sectors. It currently owns another large retail chain, Talbots.
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Billabong said at the end of February that the two parties vying to buy the company – Sycamore and Paul Naude on one side and VF Corp. and Altamont Capital Partners on the other – are still conducting due diligence, which should be wrapped up this month.
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Hot Topic operates 618 Hot Topic stores, 190 Torrid stores and five Blackheart stores.
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