High street fashion retailer Ted Baker has been sold for £211 million to US-based Authentic Brands Group (ABG) the Reebok owner that also manages the brand assets of celebrity David Beckham.
The two companies reached an agreement for the all-cash deal, at 110 pence-a-share, much less than the 160 pence that was being touted for the brand earlier this year. The board of the retailer has unanimously recommended the offer.
Ted Baker interim chair Helena Feltham said: “The Ted Baker board believes the offer, which is supported by Ted Baker shareholders with a majority of shares, represents a fair value for shareholders and balances the company’s growth prospects with the risks of the uncertain economic environment in which the business is operating.”
Ted Baker had put itself up for sale after it had received multiple approaches from US private equity suitor Sycamore Partners earlier this year. At the time the Sycamore approach valued the the business at £254 million.
Its founder, chairman and CEO Jamie Salter said: “Ted Baker is a highly regarded, uniquely British brand whose strong fashion credibility resonates with consumers around the world.
“Under ABG’s ownership, we believe that Ted Baker is poised for continued growth and success.”
Feltham added: “The Ted Baker board believes that ABG will be a strong and supportive owner of the business. We are confident that with ABG’s experience, reach and investment, the Ted Baker brand will be capable of achieving its long-term global potential.”
ABG has a portfolio of more than 50 consumer and entertainment brands, including Forever 21, Nautica, Nine West and sports brand Prince. It has more than 8,500 retail outlets.
Ted Baker was founded by Ray Kelvin in 1987.