US-based brand management company Authentic Brands Group (ABG) is set to acquire British high-street fashion retailer Ted Baker for around £211m ($254m), as reported by the BBC.
In April this year, Ted Baker started a formal sale process after receiving takeover proposals from multiple companies.
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The following month, the company announced the selection of its preferred suitor following a review of non-binding takeover proposals.
Ted Baker has been working on a turnaround plan to increase demand for its products following a dull period due to the Covid-19 pandemic.
For the 12 months to 29 January, the company reported sales of £428.2m, up by 20%, as well as a reduction in pre-tax losses from £107.7m to £44.1m.
Its share price also rose by 17% to £1.09 following confirmation of the takeover by ABG.
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By GlobalDataBased in London, Ted Baker currently operates 377 stores and concessions worldwide.
The company has been led by CEO Rachel Osborne since 2020.
The BBC quoted Ted Baker interim chairwoman Helena Feltham as saying that ABG’s offer of £1.10 to a share is expected to ‘balance the company’s growth prospects with the risks of the uncertain economic environment in which the business is operating’.
ABG said it would be a ‘good custodian’ of Ted Baker, which it described as ‘a distinctive British lifestyle brand with a rich, authentic heritage and strong worldwide customer recognition’.
Based in New York, ABG manages major brands such as Reebok and Juicy Couture, as well as the image rights of Elvis Presley.
The company also co-owns and manages former footballer David Beckham’s global brand.
In August last year, ABG completed its acquisition of Heritage Brands from clothing firm PVH.
The $223m deal included the Izod, Van Heusen, Arrow and Geoffrey Beene trademarks, as well as certain related inventories and other assets.
