British lifestyle retailer Ted Baker has announced it has agreed the terms of a recommended final cash offer by a newly formed entity of Authentic Brands Group (ABG).
UK-based ABG-Robin BidCo could be set up to acquire Ted Baker’s entire issued and issuable share capital, which will be implemented through a court-sanctioned arrangement under the Companies Act.
The total acquisition is valued at approximately £211 million, with Ted Baker shareholders receiving 110 pence in cash for each share.
In a release, the retailer, who was advised by Evercore and Blackdown, said the cash compensation is final and will not be improved or revised unless Bidco deems it necessary in the event of an offer by another third party.
Ted Baker recommended that shareholders vote in favor of the settlement and the proposed resolutions at a court hearing and a general meeting, requiring at least 75 percent of shareholders to approve the proposal.
According to the retailer, its directors and some other shareholders, who represent about 50.7 percent of the shares, have already voted in favor of the cash offer.
Ted Baker Interim Chair Helena Feltham commented: “Today we are announcing a full cash offer from ABG.
“Ted Baker’s board of directors believes that the offer, which is supported by majority-owned Ted Baker shareholders, represents fair value to shareholders and balances the company’s growth prospects with its risks of the uncertain economic environment in which the company operates.
“The Ted Baker board believes ABG will be a strong and supportive owner of the company. We are confident that with ABG’s experience, reach and investment, the Ted Baker brand will be able to realize its long-term global potential.”
Ted Baker may become private property
In addition, ABG, which owns Reebok and Juicy Couture, among others, also said it believes it will be a “close keeper” of the brand and is “well positioned to accelerate its growth and increase its value.”
The group added that Ted Baker is better suited to private ownership, which could potentially facilitate restructuring to maximize future potential.
Similar to its process with other acquired brands, ABG intends to use its global network to increase sales in several trading categories, with the further intention of splitting the Ted Baker business into an intellectual property holding company controlled by ABG and one or more operating companies. who manage retail and wholesale operations.
ABG also said it had recognized significant growth potential for Ted Baker in North America, where the group owns 50 percent of the Sparc Group retail and wholesale joint venture, with ABG further stating that a partnership could be a future option.
While the acquisition will still be subject to the conditions being met, the duo expect the Scheme to come into effect in the fourth quarter of 2022.