Private equity firm Sycamore Partners is buying Hot Topic Inc. (Nasdaq: HOTT) for about $600 million.
Hot Topic is a mall and web-based retailer that sells music and pop culture-influenced apparel, accessories, music and gifts. The company also owns Torrid, which sells fashion apparel for women size 12 and up, and Blackheart, which sells lingerie and beauty products.
The purchase price works out to $14 per share in cash. Hot Topic’s shares closed at $11.03 on March 6, and opened at $10.98 the day the deal was announced.
As part of the deal, Lisa Harper and Becker Drapkin Management LP, holders of 8.9 percent of the company’s stock, signed agreements to support the transaction.
Sycamore is a New York private equity firm with more than $1 billion in capital under management. The company has also invested in Talbots Inc., Mast Global Fashions and Pathlight Capital.
Guggenheim Securities is Hot Topic’s financial adviser, while Cooley LLP is the company’s legal counsel. Bank of America Merrill Lynch is Sycamore Partners’ financial adviser, while Winston & Strawn LLP and the Law Offices of Gary M. Holihan PC are providing legal advice.