Teavana Announces Agreement to Acquire Teaopia for $26.9M
Teavana Holdings, Inc. (NYSE: TEA) today announced that it has reached an agreement to acquire the assets of Teaopia Ltd., a leading mall-based specialty tea retailer in Canada, for an all-cash purchase price of $26.9 million, subject to post-closing adjustments. Teavana expects to fund the transaction primarily with cash on hand with the remainder from borrowings under an existing U.S. 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, and accretive by $0.03 - $0.04 in fiscal 2013.
Teaopia Ltd., 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 (www.teaopia.ca). For the twelve months ended January 31, 2012, Teaopia generated net sales of approximately CAD $17 million and opened 12 new stores, ending the period with 46 stores.
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