Universal Store (ASX:UNI) buys Cheap THRILLS Cycles for AU$50M

September 27, 2022 01:24 PM AEST | By Team Kalkine Media

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Universal Store (ASX:UNI) buys Cheap THRILLS Cycles for AU$50M — Image source: © Buschmen | Megapixl.com

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Highlights:

Universal Store (ASX:UNI) has acquired Cheap THRILLS Cycles (CTC), an Australian youth fashion retailer in an AU$50 million deal.

As part of the deal, Universal Store will acquire 100% of CTC for an initial notional enterprise value on a debt/cash-free basis.

Australian retailer Universal Store Holdings Limited (ASX:UNI) has announced recently (26 September 2022) that it has entered a binding contract with Cheap THRILLS Cycles Pty Limited (CTC).

Under the deal, Universal Store will be acquiring 100% of Cheap THRILLS Cycles in a whopping AU$50 million deal. As per the company’s announcement, this acquisition is an effort toward expanding the retail business of Universal Store. THRILLS excels in brand and product development, which may help Universal Store to expand its reach in the premium youth retail industry.

The transaction will consist of AU$17.5 million in cash, AU$17.5 million in Universal shares, and a notional amount of AU$15 million in deferred variable consideration. Universal Store will be using its existing cash reserve to fund the initial cash consideration and acquisition costs of the buy-out. The company estimates to complete this transaction by 2022 fourth quarter.

Talking about the deal, Alice Barbery, the CEO and Managing Director of Universal Store said:

What does Universal Store Holdings do?

Universal Store is an Australian fashion retailer with branches spread across Australia. The company caters to both international and national brands while its specialisation is in streetwear, denim, surf wear, and skate clothing.

Brothers Greg Josephson and Michael Josephson founded Universal Store in 1999. The company established its first-ever retail store in Carindale, Brisbane. At present, the business has transformed itself into an industry giant with over 53 stores in six different states, an emerging online store, and a turnover of more than AU$100 million.

Things to know about Cheap THRILLS Cycles

Meanwhile, shares of Universal Store were spotted trading 2.291% higher at AU$4.910 apiece at 12:51 PM AEST on 27 September 2022.

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