Reebok owner acquires Ted Baker for £211m
The directors of Ted Baker, who have been so advised by Evercore and Blackdown on the financial terms of the acquisition, consider the terms to be ‘fair and reasonable’
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Authentic Brands Group (ABG), the parent company of Reebok, has reached an agreement to acquire Ted Baker for approximately £211m, with Ted Baker shareholders being entitled to receiving 110p in cash for each Ted Baker share.
It is reported that the cash consideration is final, Bidco, an ABG-owned entity, reserves the right to improve or revise the cash consideration if there is an announcement on or after today (16 August) of other possible offers by a third party offeror or potential offeror other than ABG or Bidco.
The directors of Ted Baker said the terms of the acquisition were “fair and reasonable”, and now intend to unanimously recommend that shareholders vote in favour of the scheme.
The news of the acquisition comes as talks of Ted Baker being up on the market began circulating in April 2022, with US-base private equity firm Sycamore Partners sending the company “unsolicited” offers.
Jamie Salter, chairman and CEO of ABG, said: “Ted Baker is a highly regarded, uniquely British brand whose strong fashion credibility resonates with consumers around the world.
“We are excited to build on the brand’s global foundation through a business model focused on licensing, wholesale, retail, digital and strategic marketing partnerships. Under ABG’s ownership, we believe that Ted Baker is poised for continued growth and success.”
Helena Feltham, interim chair of Ted Baker, 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.
“The Ted Baker Board would like to recognise and thank all those who have contributed to building the brand, including the management team and Ted Baker teams across the world.”
She 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.”
