Universal Store Holdings Limited (ASX:UNI) has entered into a binding agreement to acquire Cheap THRILLS Cycles Pty Limited for Enterprise Value AUD 50 million on September 26, 2022. Consideration will consist of AUD 17.5 million in cash, 3.5 million units of UNI shares will be issued and a notional amount of AUD 15.0 million in deferred variable consideration. The initial cash consideration and acquisition costs will be funded from existing cash reserves of Universal Store. The Deferred Variable Consideration is payable in three tranches and will be based on CTC's EBIT result in each of Financial Year 2023, Financial Year 2024 and Financial Year 2025. Total Deferred Variable Consideration payments are estimated at AUD15 million - AUD 25 million and are expected to be funded from cash reserves. CTC generated sales of AUD 34.6 million, underlying EBITDA of AUD 7.6 million and underlying EBIT of AUD 7.3 million in Financial Year 2022. The transaction is expected to complete in Q4 2022 subject to the satisfaction of certain conditions precedent.

Universal Store Holdings Limited (ASX:UNI) completed the acquisition of Cheap THRILLS Cycles Pty Limited on October 31, 2022.