by Christopher Freeburn | March 7, 2013 11:22 am
On Thursday, apparel retailer Hot Topic (NASDAQ:HOTT) announced that it will be purchased by Sycamore Partners for $14 a share, about 30% above its most recent closing price.
Predictably, Hot Topic shares jumped 29% in Thursday morning trading.
The deal values the retailer at about $592.4 million and received the unanimous approval of its board of directors. The company’s largest shareholder, Becker Drapkin Management, has also agreed to the purchase, the Associated Press noted.
Shareholders will still have to give the acquisition final approval.
A retailer of trendy t-shirts and Twilight-branded apparel to young people, Hot Topic operates about 800 stores across the U.S. and Canada under the Hot Topic, Torrid and Blackheart brands.
Last month, rumors surfaced that Gap (NYSE:GPS) might be a potential acquisition target for Japan’s Fast Retailing (PINK:FRCOY).
Source URL: http://investorplace.com/2013/03/hot-topic-to-go-private-for-600m/
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