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Ted Baker expected to be acquired by US Group Authentic Brands for £211 million

1 min read . Updated: 16 Aug 2022, 01:07 PM IST Livemint

Ted Baker Plc will be sold to Authentic Brands Group Inc, the owner of Juicy Couture, in a cash deal. (Reuters)

Ted Baker sale: The US group has offered 110 pence a share for the chain and the deal represents a premium of about 18% to the retailer's closing price on Monday.

Ted Baker Plc, which is best known for its floral designs, will be sold to Authentic Brands Group Inc, the owner of Juicy Couture, in a cash deal of about £211 million ($254 million) which could secure the future of the struggling UK fashion chain, according to news agency Bloomberg.

The US group has offered 110 pence a share for the chain and the deal represents a premium of about 18% to the retailer's closing price on Monday, the retailer said in an official statement as quoted by Bloomberg.

The Authentic Brands held deliberations with Ted Baker earlier in the year and indicated it was willing to pay a higher price but then walked away from the deal. The company's directors are unanimously recommending this deal.

According to media reports, the announcement about this impending deal is expected at the opening of the London Stock Exchange, where the British fashion brand is listed.

Ted Baker has put itself up for sale earlier this year, and said that there were many interested companies that had submitted non-binding proposals, apart from Authentic Brands Group.

As per reports, Ted Baker narrowed its pretax losses at the end of May 2022 from 107.7 million pounds of previous year to 44.1 million pounds. The group sales in the first quarter of this year were around 20% more as compared to the last year, however, they are still 37% lower than the corresponding period in 2020.

According to the Bloomberg reports, Authentic Brands, a New York-based company, is the owner of licensing and marketing rights to names like David Beckham and Juicy Couture. It has also been a key consolidator in the retail industry. The company was founded by Jamie Salter and agreed to buy Reebok from Adidas AG in August of last year for $2.5 billion.