Reports this week specify how ABG- Authentic Brands, which owns Forever 21 and Juicy Couture has bagged a deal to acquire UK brand Ted Baker. Turns out, the value of the deal is about 211 million pounds or $254 million. This announcement puts a stop to the long term speculations regarding the future of this fashion giant from the United Kingdom.
As it faced intense losses during Covid-19 pandemic, the British brand was compelled to offer itself for sale about four months ago, with it finally choosing a suitable firm to do so in May this year. A month after this, the concerned company who reportedly offered the deal, made the decision to come up with this offer. This offer compelled the UK firm to look to more choices for its future.
Currently, the company has finally come to a mutual decision with the Juicy Couture owner, comprising a cash deal of 110 pence for every shares of the UK group, representing an up of around 18.2%, as opposed to the closing price from August 15. Both the parties specified that the agreement would not see any revision till an opposing suitor comes up.
Statement from the US-based company:
Authentic Brands stated how it holds the beliefs of the presence of numerous chances for Ted Baker London to significantly grow. Mainly, it referred to the fashion group prominent consumer recognition in the sector in the North American continent. ABG gave this statement on August 16.
British fashion brand Ted Baker is mainly famous for its clothing items shirts, suits and dresses possessing distinct quirky attributes in the sector. Being in a turnaround plan presently, the group is aiming to gain a profit from a revival in the consumer demands for items coming in the office and leisure clothing. Three months ago, it announced a relatively lesser annual loss, which was about 38.4 million pounds. It stated how its sales in this first quarter had gone up by 20% year on year.
Additionally, it refused numerous offers from Sycamore, a private equity group, prior to coming up with its sale procedure. This week’s step from it is the newest in a range of offers for UK firms, making it additionally affordable to international consumers through the new fall of sterling pound. It shares were visibly up around 17% at around 108p in early trading. Notably, this was just shy of the ABG asking price, though still lesser than the highest it went in the year 2015 as they were trading at 2.973p per share.