Yucaipa (YAC) Shareholders Approve SIGNA Sports Deal
Yucaipa (NYSE:YAC) announced this afternoon that its shareholders have approved its combination with SIGNA Sports United in a special meeting held earlier today.
Holders of 32,136,222 ordinary shares were present in person or by proxy at today’s meeting, representing 74.52% of the voting power of Yucaipa’s ordinary shares.
Although the business combination was overwhelmingly approved, 31,820,685 shares were redeemed in connection to the vote, removing 92.263% from YAC’s trust..
Just last week, YAC was able to secure an additional $100 million for its combination. This additional funding comes almost two months after Yucaipa signed a backstop agreement, worth up to $178 million, and upsized its PIPE by an additional $70 million. The backstop agreement from October, which drew participation from SIGNA Sports’ current parent SIGNA International Sports Holding GmbH as well as Bridgepoint, was able to provide dollar-for-dollar additional investments into the PIPE corresponding to the amount of cash removed from Yucaipa’s trust via redemptions.
The deal is expected to close tomorrow, December 14, and the combined company is expected to trade on the NYSE under the symbol “SSU”.
The parties initially announced their $3.23 billion combination on June 11, 2021. Berlin-based SIGNA sells sporting goods through multiple ecommerce brands and will also acquire online bike retailer WiggleCRC through this deal.
ADVISORS
- Citi acted as lead financial advisor to SSU.
- Moelis & Company LLC acted as lead financial advisor to YAC.
- Jefferies acted as capital markets advisor to YAC.
- Citi and Jefferies LLC acted as co-placement agents on the PIPE.
- Skadden, Arps, Slate, Meagher & Flom LLP acted as lead legal advisor to SSU.
- Kirkland & Ellis LLP acted as lead legal advisor to YAC.