The offer comes from a newly incorporated entity wholly owned by ABG, ABG-Robin BidCo (UK). The offer is for 110p (US$) per share, which values the acquisition at around £211 million (US$).
The offer represents a premium of approximately 18.2% on Ted Baker’s share price of 93.10 pence at close of business on 15 August 2022, the last business day before the announcement.
ABG was rumoured to be the frontrunner to acquire the brand earlier in the year, not long after acquiring footwear brand Reebok.
In a statement, ABG said that it “intends to use its global network of established operating partners with deep industry expertise, together with its business model that combines leading brand management capabilities, to enhance Ted Baker’s revenue and profitability across merchandise categories and geographic regions as it has for other acquired brands including Reebok, Brooks Brothers, Nautica, and Eddie Bauer.”
The company also noted that the brand is “better suited” to private ownership, which would facilitate a restructuring of the business in order to maximise its future potential.
Following the acquisition, ABG said that it intends to separate the business into an intellectual property holding company which would remain controlled by ABG, and one or more operating companies which would manage the physical retail, e-commerce and wholesale operations of the Ted Baker business.