Beckham backer Authentic Brands Group in talks to seal £300m takeover of Ted Baker | business news

The consumer goods giant, which owns a majority stake in David Beckham’s branded products portfolio, is aiming to complete a £300m takeover of Ted Baker, the London-listed fashion retailer.

Sky News has learned that Authentic Brands Group (ABG) is the preferred bidder for Ted Baker and has indicated it is willing to pay more than 150 cents a share for the company.

A retail executive said this weekend that ABG, which also owns Reebok, was advised by Bank of America on the talks.

While not a formal exclusivity, the executive added that a formal deal could be signed within weeks.

In an IPO Monday, Ted Baker said its board had “selected a preferred counterparty to enter a process of confirmatory due diligence,” but declined to name the bidder.

ABG’s interest in Ted Baker was announced by Sky News last month and would add the British brand to a range of fashion names including Sports Illustrated magazine, brands associated with Muhammad Ali and basketball legend Shaquille O’Neal and Fashion labels belong as Juicy Couture.

The privately held American company is led by billionaire businessman Jamie Salter.

It was recently valued at nearly $13bn (£10.3bn) after selling “significant holdings” in CVC Capital Partners, the shareholders of Six Nations Rugby, and HPS Investment Partners.

ABG’s valuation has risen sharply in recent years after it reportedly sold a majority stake in August 2019 for $870 million to a division of BlackRock, the world’s largest wealth manager.

Other shareholders include buyout firms General Atlantic and Lion Capital, and GIC, Singapore’s sovereign investment fund.

Except Mr. BeckhamTed Baker, the branded goods division of , would be ABG’s most high-profile UK takeover to date.

ABG owns a controlling interest in David Beckham’s branded product portfolio

Last year the company teamed up with JD Sports Fashion to buy TopShop from the ruins of Sir Philip Green’s fashion giant Arcadia Group, but was outbid by ASOS.

Ted Baker was brought into play by a series of RFPs from Sycamore Partners, an American private equity firm that withdrew from the formal sale process this week.

Sycamore had submitted three takeover bids, the first two of which valued Ted Baker at 130p a share and 137.5p a share.

Ted Baker is steadily recovering from a turbulent period that saw its stock plummet over 90%.

This week it said annual losses had shrunk as customer demand recovered from the pandemic.

Still, uncertainty about the outlook for consumer spending has weighed on sentiment towards retail stocks in recent weeks.

The industry is also struggling with the challenges posed by rising inflation and higher energy costs.

Despite its modest market capitalization, Ted Baker occupies a prominent place in UK fashion retail.

It deals with hundreds of standalone businesses and concessions worldwide and employs thousands of people.

Ted Baker’s hot spell began in 2019 when founder Ray Kelvin left the company after he was accused of inappropriate behavior towards female colleagues.

It has since been beset by profit warnings and accounting mishaps, and has been forced to address the COVID-19 pandemic from a position of financial weakness.

In 2020, the company has cut hundreds of jobs and raised £100m to shore up its balance sheet.

Mr. Kelvin remains a significant shareholder in the Company.

Evercore and Blackdown Partners are advising Ted Baker.

Shares of Ted Baker closed up 135.8p on Friday, valuing the company at £251m.

Ted Baker and ABG declined to comment.

Beckham backer Authentic Brands Group in talks to seal £300m takeover of Ted Baker | business news

Source link Beckham backer Authentic Brands Group in talks to seal £300m takeover of Ted Baker | business news

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