Authentic Brands Group reportedly frontrunner in Ted Baker takeover
Reebok-owner Authentic Brands Group (ABG) is reportedly the frontrunner in the race to snap up British brand Ted Baker.
ABG is being advised by Bank of America over a 300 million pound deal for the company, Sky News reports, citing unnamed sources.
The US group, whose portfolio also includes Forever 21 and David Beckham’s DB Ventures, is reportedly willing to pay over 150p a share for Ted Baker.
One retail executive told Sky a formal deal could be signed within weeks, however added that the deal is “not in formal exclusivity”.
The news comes after Ted Baker launched a formal sales process in April after receiving a number of unsolicited offers.
Last week, the company announced it had selected a potential buyer. It did not say who the buyer was, but it confirmed New York-based private equity firm Sycamore had stepped out of the takeover race.
Road to recovery
Ted Baker has faced a difficult period in recent years, with its stock price falling by more than 90 percent.
But earlier this week, the company revealed it had slashed its full-year loss before tax to 44.1 million pounds from 107.7 million pounds a year earlier.
In that same period, the company reported a 20.5 percent increase in revenue to 428.2 million pounds.
Chief executive Rachel Osborne told investors at the time: “While we remain mindful of what is a challenging macro environment, we are well positioned for growth.
“The positive response to our SS22 collection and the recent launch of our new digital platform, supported by our strong brand, capital light strategy and well-established distribution channels give us confidence in Ted Baker's future.”