Retailer deal

Ted Baker sold to Reebok owner for £211m

Ted Baker girl
Ted Baker: launched in Glasgow

Fashion chain Ted Baker has agreed a takeover bid worth about £211 million from the US company that owns Reebok and a stake in former footballer David Beckham’s portfolio.

Authentic Brands, which was thought to be behind a 160p a share, in June, has returned with a lower 110p-a-share proposal.

The revised price still represents an 18.2% premium to Ted Baker’s closing share price last night of just above 93p, up 4.5p (4.7%) yesterday. It is an 11.4% premium to the share price of 98.75p at close of business on 17 March, the last business day before the offer period commenced.

After the initial offer was pulled – apparently over concerns around the British high street – Ted Baker said it would restart talks with other potential buyers that had made non-binding offers.

The retailer has had a torrid few years, with a profit warning and shop closures accompanied by a collapse in its shares by about 90% following accounting issues and the departure of founder Ray Kelvin in 2019. Mr Kelvin, 66, who remains a large shareholder, returned to the retailer 18 months later.

He opened his first shop selling men’s shirts in Glasgow in 1988, turning the brand into one of Britain’s most familiar high street brands with 550 shops and concessions.

In May Ted Baker reported a narrowing of annual losses from £107.7 million to £44.1m, with sales up by 20.5% to £428.2m.

Authentic Brands, run by the prominent businessman Jamie Salter, is attracted to Ted Baker’s international potential and synergies with its own portfolio of brands, which includes Sports Illustrated magazine. Last year it bought Reebok from Adidas and also owns the Juicy Couture clothing brand, as well as the Marilyn Monroe image rights.

It has 300,000 points of sale and more than 8,500 retail stores and shop-in-shops. Its brands collectively generate over $21 billion in annual global retail sales.

The company has been valued at nearly $13bn following the sale of “significant equity stakes” to CVC Capital Partners, the Six Nations Rugby shareholder, and HPS Investment Partners.

ABG’s valuation has soared in recent years, after reportedly selling a controlling stake in August 2019 to a division of BlackRock, the world’s biggest asset manager, for $870m.

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