Ted Baker Takeover Agreed By Reebok Owner
Authentic Brands Group (ABG), a US brand management company that owns businesses including Reebok, Tapout and Volcom, has agreed a £211m takeover of British fashion and lifestyle brand Ted Baker.
The proposal from ABG, which also holds a stake in David Beckham’s DB Ventures, is almost a third lower than the 160p-a-share price it was preparing to offer as recently as May.
However, the new 110p-a-share deal on offer, which has a market value of £167m, remains 18% higher than the closing price of Ted Baker’s shares on Monday 15th August, which are down 35% over the past year.
Ted Baker said in a statement on Tuesday 16th August, “The directors of Ted Baker consider the terms of the acquisition to be fair and reasonable. Accordingly, the directors intend unanimously to recommend that Ted Baker shareholders vote in favour.”
It is thought that the reduced price ABG has secured for one of the UK’s most high-profile retailers is down to the struggles of high street brands in a UK economy being severely impacted by inflation and fearing an impending recession.
Ted Baker currently has more than 500 shops and concessions around the world.
ABG is said to be attracted to Ted Baker’s international potential as well as possible synergies from the US-based company’s portfolio of brands, which also includes Sports Illustrated magazine, Juicy Couture and brands associated with Muhammad Ali and Shaquille O’Neal.
ABG commented, “ABG intends to use its global network of established operating partners with deep industry expertise, together with its business model that combines leading brand management capabilities, to enhance Ted Baker’s revenue and profitability across merchandise categories and geographic regions as it has for other acquired brands including Reebok, Brooks Brothers, Nautica and Eddie Bauer.
“ABG believes that Ted Baker is better suited to private ownership, as this will facilitate a restructuring of the business in order to maximise its future potential.”
Image: Adobe Stock
