Ted Baker Gets Multiple Buyout Proposals

“A number” of potential suitors are angling to buy British fashion retailer Ted Baker, less than a month after the brand put itself on the block to gauge the interest level in the market, according to a Reuters report Wednesday (April 27).

Ted Baker, which has almost 400 locations across Europe, North America and the United Kingdom, launched a formal sale process after private equity firm Sycamore Partners upped its proposal and another company showed interest in bidding for the company, the report says.

Sky News reported this week that Reebok owner and brand licensing conglomerate Authentic Brands Group is also exploring a bid for Ted Baker. The retail company said Wednesday it was inviting all potential bidders to enter a due diligence process and noted it would provide them with information on its business.

It’s still uncertain that any of the potential suitors will make an offer to secure Ted Baker, and company officials noted Wednesday they reserve the right to change or end the formal sale process or reject any approach, the report says.

Related: Authentic Brands Group Looking to Add Ted Baker Label to Its Growing Portfolio

Authentic Brands Group (ABG)—which includes Reebok, Aeropostale, Forever 21 and roughly 50 other labels—is among “several parties” considering making an offer for Ted Baker and has been talking to the company’s financial advisers, the report says, with ABG reported to be part of the process that included a bid deadline last Thursday (April 21) for non-binding offers.

Ted Baker rejected a pair of bids from private equity firm Sycamore Partners last month that put the company’s value in the range of 250 million pounds (almost $320 million) but announced in early April that it was open to offers.

Ted Baker’s sales grew 35% last year, and company officials said this month that it was “well-positioned to create significant value for shareholders,” the report says.

Also Read: UK Clothing Retailer Ted Baker Now Open to Sale

Sycamore’s first offer proposed 130 pence per share. The investor followed that by raising its offer to 137.5 pence per share, which would have valued Authentic Brands Group at 253.8 million pounds (about $333.7 million). Sycamore later sent an “improved proposal,” and Ted Baker also saw other “unsolicited third-party bid interest.”