Urban Outfitters Bought Vetri for Under $20 Million
One of the biggest questions looming about the Urban Outfitters–Vetri Family of restaurants deal was a simple one: How much did Urban pay to acquire the company?
Urban’s chief financial officer told Bloomberg Business that it paid less than $20 million for the restaurant group. (Both sides announced the deal Monday without disclosing financial terms. I asked Marc Vetri in a wide-ranging interview yesterday, but he declined to answer.)
CFO Frank Conforti “said that the transaction won’t change the company’s capital structure or its ability to invest in e-commerce and stock buybacks — two areas seen as bigger priorities,” Bloomberg reported.
It’s unclear why Conforti disclosed the transaction price, but it’s likely because news of the deal shocked investors and sent Urban’s stock price plummeting. (The stock is finally seeing gains Wednesday morning after falling Monday and Tuesday.) Perhaps he’s trying to quell the naysayers and show investors that it’s not a huge investment for a large, public company that’s No. 701 on the Fortune 1000 list.
Here’s a few other things we learned from the interview:
- Urban is spending $1 million a piece to add new restaurants.
- It will open three new Pizzeria Vetri shops next year.
- Pizzeria Vetri stores will be “paired up” with Urban stores in many cases.
- The move is “a shift toward an economy where consumers want experiences, rather than just merchandise,” Bloomberg said.
In an interview on Tuesday, Vetri called the deal “an unprecedented event in the restaurant and retail world” and said there won’t be any pizza served inside Urban stores. There will, however, be lifestyle centers emerging that contain both Urban and Pizzeria Vetri brands. He also said to expect more Amis Trattoria restaurants in the future, because they’re one of the easiest concepts to replicate.
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