A Ted Baker branch is located on Regent Street in London, England.
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Authentic Brands Group, the retail conglomerate that owns businesses including Reebok, Forever 21 and Juicy Couture, has agreed to buy British fashion chain Ted Baker for around £211 million, or $254 million.
The value of the deal, which would pay 110 pence in cash for each Ted Baker share, represents a premium of about 18% to its closing price on Monday. The company is listed on the London Stock Exchange.
Ted Baker said its board will unanimously recommend that shareholders vote on the deal.
After completion, ABG said it intends to separate the Ted Baker business into an intellectual property holding company that would remain controlled by ABG, plus one or more operating companies that would manage the stores, e-commerce operations and business. brand wholesaler.
ABG also said it will explore options to transfer full or partial ownership and control of some or all of those separate operating companies to other partners.
Tuesday’s announcement resolves months of speculation about the future of the British fashion moniker, which was forced to go on sale earlier this year amid difficulties related to the Covid pandemic.
Ted Baker turned down several offers from private equity chain Sycamore Partners before launching its own sale process. ABG had also been in talks with Ted Baker about a deal before he pulled out.
ABG founder and CEO Jamie Salter said in a statement Tuesday that the Ted Baker brand is “highly appreciated” by consumers around the world.
“We are excited to build on the brand’s global foundation through a business model focused on licensing, wholesale, retail, digital and strategic marketing partnerships,” he said.
Ted Baker is also in the midst of its own recovery plans and expects to benefit from continued strength in luxury demand, even as inflation persists and consumers have cut spending on other non-discretionary items.
The strength of luxury retail has fueled more merger and acquisition activity in this sector, while British companies have become more affordable to foreign buyers due to the weakness of the pound.
Source: www.cnbc.com