Teen marketing company Alloy Inc. has entered an agreement to buy accessories marketer Delia’s Corp. for approximately $50 million.
Under the terms of the deal, Alloy will acquire all of the outstanding shares of Delia’s common stock for $0.928 per share in cash, according to a statement released this morning. Based on an assumed total of approximately 53.9 shares outstanding, the deal totals a purchase price of $50 million.
The transaction is expected to close during Alloy’s third fiscal quarter.
"We believe the combination will create the premier teen multi-channel merchandise business, with a $300 million annual revenue base; a merged database of over 20 million names; a stable of recognized distribution brands; and strong growth platforms in direct marketing, retail stores and product licensing," said Matthew Diamon, Alloy’s chairman, in a statement.
Delia’s assets include a print catalog, a Web site and retail stores targeted to teens. The merger of the businesses is expected to generate $10 million to $15 million per year, according to the statement.
