Sycamore Partners has completed its acquisition of Hot Topic in a transaction is valued at approximately USD600m.
Hot Topic operates more than 800 stores selling clothing, accessories and music to teens.
"Hot Topic and Torrid are both leaders in their categories, and we are excited to have both brands as part of our portfolio," says Stefan Kaluzny, managing director of Sycamore Partners. "Sycamore Partners is very pleased to have the opportunity to partner with Lisa Harper and her team to invest in the continued development of both the Hot Topic and Torrid retail brands."
Lisa Harper, chief executive officer and chairman of the board of Hot Topic, says: "We are very happy to partner with Sycamore Partners. Their knowledge and expertise in the consumer and retail markets is precisely what we need to optimize both the Hot Topic and Torrid brands."
As a result of the completion of the merger, the common stock of the company is no longer listed for trading on the Nasdaq Global Select Market.
Guggenheim Securities acted as financial advisor to Hot Topic and Cooley acted as its legal counsel. Winston & Strawn and the law offices of Gary M Holihan, PC acted as legal counsel to Sycamore Partners.
The Hot Topic transaction is the fourth investment by Sycamore Partners, which has more than USD1bn in capital under management. Previous transactions include the acquisition of a controlling interest in Mast Global Fashions from Limited Brands, the formation of Pathlight Capital and the acquisition of The Talbots.
