Reebok Owner ABG Reportedly Exits Race to Buy Ted Baker
Authentic Brands Group is has reportedly withdrawn from the race to acquire Ted Baker, the London-based fashion brand.
Ted Baker said in a public statement on Tuesday that it was informed that its “preferred counterparty” would no longer proceed with an offer to acquire the brand.
In late May, Ted Baker announced that its board has selected a party with which to move forward in a sale process. Though the brand never named ABG, the global brand and marketing powerhouse was reportedly one of multiple interested parties who engaged with Ted Baker for a possible sale, Sky News reported in April. According to the report, it was unclear if ABG had submitted a formal offer, but it was among other interested companies exploring its options.
“The counterparty indicated that its reason for not proceeding was not linked to its due diligence review of the Company,” Ted Baker said in a statement on Tuesday, adding that the company had received “a number of other non-binding proposals” which will now be scrutinized.
Watch on FN
ABG and Ted Baker did not return a request for comment.
Ted Baker said in a public statement in April that it had entered into a process to put itself up for sale. The company also said it had received two unsolicited non-binding proposals from Sycamore Partners to acquire the company, which were rejected due to the way in which they each “significantly undervalued” the company.
Ted Baker previously said it received an improved offer from Sycamore as well as a third offer from another party. Ted Baker said it will limit its engagement with companies that “understand and value the full potential of this unique brand.”
Ted Baker, which operates almost 400 locations across the world, posted a lift in overall sales for the quarter ending in January. Sales jumped 35% year over year for the quarter.
ABG’s roster of brands includes Forever 21, Barneys New York, J.C. Penney, Reebok, Muhammad Ali, Shaquille O’Neal, Marilyn Monroe and most recently, David Beckham’s global brand. ABG entered into a deal to co-own and manage David Beckham’s global brand in February.
ABG, led by CEO Jamie Salter and president and CMO Nick Woodhouse, was awarded Company of the Year in Footwear News’ Annual Achievement Awards in New York in November.
ABG filed for an IPO in July but delayed plans to go public after it received a pair of new investments from CVC Capital Partners (CVC) and HPS Investment Partners (HPS) in November.
