US private equity powerhouse Sycamore Partners makes £250m bid for Ted Baker
US private equity group Sycamore Partners has reportedly made a formal £250m offer for the fashion chain Ted Baker.
According to reports from Mark Kleinman for Sky News, a proposal valuing the British firm at 130p-a-share was submitted in writing in the last few days.
City sources have suggested that the move is likely to be rejected by the retailer’s board, which ultimately leave Sycamore to drive up its bid price or abandon its swoop.
The fashion firm has seen its value plummet in recent years from a previous peak of £1.4bn; at Friday’s close, its market capitalisation was just £233m.
Nonetheless, the board reportedly backs Ted Baker prominent position in the retail fashion space.
Last month, City PM reported that Ted Baker was set to steam ahead with its UK expansion plans – with hopes of a least three new stores each year over the next three years – despite the Omicron-induced dent to sales.
The retailer saw sales plunge 42 per cent during the Omicron surge, in comparison with the final quarter of 2019.
However, sales have recovered 35 per cent in the three months to January 29, jumping nearly 20 per cent in comparison with autumn last year.
Beyond the UK, the fashion brand has locked its sights on North America for widening its successful home and bedding product licence with home retailer Bedeck which kicks off in July.
Ted Baker has also extended its Jack Victor licence for North America for another five years.
Meanwhile, Sycamore is an expert in retail investments, having owned brands such as fashion label Kurt Geiger.