Teavana expects to fund the transaction primarily with cash on hand with the remainder from borrowings under an existing US credit facility. The acquisition is expected to close in the second fiscal quarter, subject to customary closing conditions.
The acquisition’s impact to earnings per share is expected to be neutral in fiscal 2012, excluding transaction and integration expenses.
Teaopia, founded in 2005 and based in Canada, is a specialty retailer of loose-leaf teas, tea related merchandise and beverages operating in 46 company-owned stores, primarily in high-end malls across Canada and online.
Andrew Mack, chairman and CEO of Teavana Holdings, said: “We are excited to rapidly advance Teavana’s expansion in Canada with the Teaopia acquisition. With this acquisition, we immediately establish a strong foothold in many of the best mall locations in Canada.
“Teaopia’s prime mall locations, similar store branding and focus on premium loose-leaf teas, and great store employees and managers all make this opportunity a natural fit for us.
“As we integrate and rebrand the Teaopia stores, we look forward to leveraging our shared best practices and welcoming the Teaopia employees into the Teavana family.”
Source: Teavana Holdings
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