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- Universal Store (UNI) will acquire casual youth fashion apparel company Cheap THRILLS Cycles (CTC) for a total enterprise value of $50 million
- The total consideration consists of $17.5 million cash, $17.5 million in UNI shares and $15 million in deferred variable consideration, to be funded from existing cash reserves
- The acquisition is part of the company’s strategy to further expand its direct-to-consumer channel and close unmet market gaps and demand
- The transaction is expected to complete in Q4 2022
- Shares in Universal Store are up 2.78 per cent to close at $4.80
Universal Store (UNI) will acquire casual youth fashion apparel company Cheap THRILLS Cycles (CTC) for a total enterprise value of $50 million.
The total consideration consists of $17.5 million cash, $17.5 million in UNI shares and $15 million in deferred variable consideration, to be funded from existing cash reserves.
The equity consideration will be funded through the issue of 3.5 million UNI shares at $4.96 per share, with half of the shares escrowed until the release of Universal’s FY24 results and the other half until the FY25 results.
The acquisition is part of the company’s strategy to further expand its direct-to-consumer channel and close unmet market gaps and demand to deliver unique, high-quality products and brands.
“In THRILLS, Brooke, Tabitha and Ryan have built an iconic youth fashion brand and have a proven capability to deliver products our customers love,” CEO and Managing Director Alice Barbery said.
“THRILLS is currently the highest selling third party brand in our Universal Store business and has been a consistent and growing part of our product offer for over eight years.
“We are excited by the opportunities a closer partnership can deliver in both product and brand development as well as further expansion of THRILLS direct-to-consumer channel.”
The company said CTC will continue to operate as its own business and maintain its focus on delivering excellent customer service to retail partners and consumers.
However, it expects the partnership to facilitate further range expansion and continued refinement in the product development process.
With the company’s support, CTC expects its retail channels, in-store and online to continue growing as Universal brings new ranges and brands to market.
The transaction is expected to complete in Q4 2022.
Shares in Universal Stores were up 2.78 per cent to close at $4.80.
