Courtesy of Hot Topic
Hot Topic's headquarters is based in City of Industry.
Teen retailer Hot Topic said Thursday it plans to be acquired by a New York private equity firm for $600 million.
Sycamore Partners said it will buy Hot Topic, based in the City of Industry, for $14 a share, a 30 percent premium above the company’s stock price on March 6th.
In order for the deal to move forward, it will require approval from the majority of Hot Topic’s shareholders.
Hot Topic is known for its more than 600 stores, which sells music and pop-culture apparel and gift items to young men and women. Hot Topic also has about 200 Torrid stores which markets to plus-sized young women and five Blackheart stores which sells lingerie and sleepwear.
Hot Topic isn't the only national retailer Sycamore Partners has taken private. The group purchased struggling women's apparel retailer Talbots last year in a $391 million deal. It also has invested in apparel manufacturing firm Mast Global Fashions, which used to be part of the Limited Brands.
Hot Topic reported net sales of $179.4 million, up two percent in its third quarter. Net income was $4.3 million that quarter.
Hot Topic's stock price on Thursday morning was trading at $13.88 a share, up 29 percent.