Sycamore seals acquisition of Hot Topic at 600 million dollars

Sycamore Partners announced Wednesday

that it has completed its acquisition of Hot Topic, Inc. in a transaction valued at approximately 600 million dollars.

"Hot Topic and Torrid are both leaders in their categories, and we are excited to have both brands as part of our portfolio," said 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."

Commenting the news, Lisa Harper, Chief Executive Officer and Chairman of the Board of Hot Topic, said, "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 optimise both the Hot Topic and Torrid brands."

As a result of the completion of the merger, the common stock of Hot Topic is no longer listed for trading on the NASDAQ Global Select Market, warned the apparel retailer.

Guggenheim Securities acted as financial advisor to Hot Topic and Cooley LLP acted as its legal counsel. Winston & Strawn LLP and the Law Offices of Gary M. Holihan, P.C. acted as legal counsel to Sycamore Partners.

The Hot Topic transaction is the fourth investment by Sycamore Partners, which has more than one billion dollars in capital under management. Previous transactions within the apparel market include the acquisition of a controlling interest in Mast Global Fashions from Limited Brands, Inc., the formation of Pathlight Capital, LLC and the acquisition of The Talbots, Inc.