Teavana Acquires Teaopia

Apr 18, 2012 2:02 AM  By

Teavana Holdings announced Tuesday it reached an agreement to acquire the assets of Teaopia Ltd., a mall-based specialty tea retailer in Canada, for an all-cash purchase price of $26.9 million.

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.

Founded in 2005 and based in Canada, Teaopia Ltd. 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 12 months ended Jan. 31, 2012, Teaopia generated net sales of about CAD $17 million and opened 12 new stores, ending the period with 46 stores.

Teavana was advised in the transaction by North Point Advisors, and Teaopia was advised by Broadstone Partners.