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Ted Baker PLC on Tuesday said it has agreed to £211 million takeover from Reebok owner Authentic Brands Group, ending a several months long formal sales process.
Authentic Brands will fork out 110 pence per Ted Baker share, an 18% premium to the retailer's 93.1p closing price on Monday.
Ted Baker shares were 17% higher at 108.80p each in London on Tuesday morning. The company has a market capitalisation of £195.4 million.
The firm expects the takeover to be completed during the fourth quarter of 2022.
‘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 Interim Chair Helena Feltham said.
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.’
The London-based seller of clothing and accessories has been in a formal sales process since April, and initially had said that Sycamore Partners Management LP, a New York-based private equity firm whose approaches had triggered the move, was participating.
However, Ted Baker later confirmed that Sycamore was no longer participating in the sales process.
In May, Ted Baker said it had progressed talks with a ‘preferred counterparty’ into the due diligence phase, however the unnamed party had bowed out of a potential deal in June.
The takeover requires 75% of attending Ted Baker shareholders to vote in favour of the scheme at a court meeting.
ABG in March completed the buy of Reebok from Adidas AG in a deal worth up to €2.1 billion.
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