Ted Baker agrees takeover by US Reebok owner

theguardian.com:

Ted Baker has agreed a cut-price £211m takeover by the US group that owns Reebok and a stake in David Beckham’s clothing and merchandise empire.

The board of the retailer, which has more than 500 shops and concessions around the world, has recommended shareholders approve the buyout by Authentic Brands Group (ABG).

The 110p-a-share deal for the London-listed fashion brand, which has a market value of £167m, is far below the 160p-a-share ABG was contemplating in May as multiple potential suitors mulled bids.

However, the value of the deal is 18% higher than the closing price of Ted Baker’s shares – which are down 35% over the last year – on Monday.

“The directors of Ted Baker consider the terms of the acquisition to be fair and reasonable,” the company said in a statement on Tuesday. “Accordingly, the directors intend unanimously to recommend that Ted Baker shareholders vote in favour.”

ABG has already secured irrevocable undertakings backing the deal from shareholders accounting for 50.7% of Ted Baker’s issued share capital, including interests held by its directors.

The retailer kicked off a formal sales process in April after rejecting a series of bids from the US private equity group Sycamore Partners and others.

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According to a stock exchange announcement made by Ted Baker in early June, “a preferred counterparty”, which had been invited to undertake confirmatory due diligence, had said it no longer intended to proceed with an offer.

ABG, which is valued at $13bn (£10.8bn) after selling several stakes to US private equity in recent years, has snapped up assets including Sports Illustrated