Atlanta — Teavana Holdings, Inc. has reached an agreement to acquire the assets of Teaopia Ltd., a leading mall-based specialty tea retailer in Canada, for $26.9 million in cash, subject to post-closing adjustments. The acquisition is expected to close in the second fiscal quarter.
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 12 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.
“We are excited to rapidly advance Teavana’s expansion in Canada with the Teaopia acquisition,” says Andrew Mack, chairman and CEO of Teavana Holdings, Inc. “With this acquisition, we immediately establish a strong foothold in many of the best mall locations in Canada. Teaopia’s prime mall locations, similar store branding and focus on premium loose-leaf teas, and great store employees and managers all make this opportunity a natural fit for us. As we integrate and rebrand the Teaopia stores, we look forward to leveraging our shared best practices and welcoming the Teaopia employees into the Teavana family.”
Teavana was advised in the transaction by North Point Advisors, and Teaopia was advised by Broadstone Partners.
Teavana is a specialty retailer offering premium loose-leaf teas other tea-related merchandise in more than 200 company-owned stores and on its website. For more information, visit www.teavana.com.