High StreetNews

Reebok owner in talks to seal £300m Ted Baker takeover

The Authentic Brands Group is being advised by the Bank of America on a takeover worth over 150p-a-share

Reebok’s owner, the Authentic Brands Group (ABG), is reportedly racing to finalise a £300m takeover of Ted Baker, according to Sky News.

ABG has reportedly become the preferred bidder for the London-listed fashion retailer, and has indicated that it is willing to pay more than 150p-a-share for the company.

According to Sky, ABG is being advised by Bank of America on the talks and, although it is not in formal exclusivity, a formal deal could reportedly be signed within weeks.

Last Monday (23 May), Ted Baker announced it had selected a preferred counterparty to buy the business as US Private equity firm, Sycamore, officially backed out of acquiring the fashion retailer. Ted Baker said its board had “selected a preferred counterparty to take forward into a process of confirmatory due diligence”.

ABG is a privately held American company run by billionaire businessman Jamie Salter, and it owns a controlling stake in David Beckham’s portfolio of branded products.

The group was recently valued at nearly $13bn (£10.3bn) after selling “significant equity stakes” to CVC Capital Partners, the Six Nations Rugby shareholder, and HPS Investment Partners. ABG’s valuation has grown in recent years, after reportedly selling a controlling stake in August 2019 to a division of BlackRock for $870m (£689m).

Its other shareholders include the buyout firms General Atlantic and Lion Capital, and GIC, the Singaporean state investment fund.

Shares in Ted Baker closed on Friday at 135.8p, valuing the company at £251m. In a recent trading update, Ted Baker reported that its losses narrowed to £44.1m for the 52 weeks ended 29 January 2022, up from a loss of £107.7m the previous year.

The improved performance comes as group revenues increased 20% to £428.2m, up from £355.3m, as the retailer said sales were “supported by a steady return to the office and social events”.

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