The company will be referred to as “SpinCo” until the transaction is finalized, and will continue under of the leadership of Noel Goggin, EVP and General Manager of Epicor. In his position, Goggin reports directly to Epicor President and CEO Joe Cowan.
“The spinoff of our retail business will ultimately deliver increased value to the customers of both resulting companies,” Cowan said. “We believe this move will enable both businesses to become more focused, better positioned for growth and capitalize on the unique competitive opportunities faced by each.”
As a standalone business, SpinCo will be positioned to help Epicor “better serve our clients,” Goggin added. “SpinCo will be uniquely positioned to bring advanced technology and entrepreneurial innovation into today’s fast-paced environment of global retail.”
Epicor also announced a proposed debt offering of $2.1 billion. The proceeds will be used to refinance the company’s outstanding $1.3 billion debt obligations, refinance $400 million of notes held by the company’s indirect parent and to fund a dividend distribution to shareholders.
The debt refinance and related spinoff transaction are expected to by completed by the end of June 2015. Jefferies Group LLC is serving as financial advisors for the transaction, and Kirkland & Ellis is providing outside legal counsel to Epicor.