Ted Baker has accepted a £211m takeover bid from Reebok owner Authentic Brands, ending months of speculation about its future. 

Ted Baker sign USA

ABG returned to Ted Baker with a fresh proposal after withdrawing its original offer in June

Authentic Brands Group (ABG) has struck a deal worth 110p per share, a premium of 18.2% to Ted Baker’s share price of 93.1p when markets closed yesterday. 

ABG, which also owns businesses including Nautica, Brooks Brothers and Sports Illustrated, withdrew a higher bid for Ted Baker of around 160p per share back in June amid concerns around consumer confidence and the state of the UK high street

But the consumer goods group returned with a fresh proposal, which will be recommended to shareholders by the Ted Baker board.

More than 75% of investors will need to vote in favour of the deal before it can be officially rubber-stamped.

ABG said Ted Baker was “a distinctive British lifestyle brand with a rich, authentic heritage and strong worldwide customer recognition” which was “better suited” to private ownership. It insisted that leaving the stock market would “facilitate a restructuring of the business in order to maximise its future potential”.

It added: “ABG believes it will be a good custodian of the Ted Baker brand and is well positioned to accelerate its growth and enhance its value.”

ABG said it plans to use its “global network of established operating partners with deep industry expertise” to grow sales and profits across categories and geographies.

ABG has already set its sights on growing Ted Baker’s presence in the US, and said it could combine the brand’s retail operations with those of SPARC – a retail, ecommerce and wholesale joint venture it owns alongside Simon Property Group.

SPARC currently operates around 1,660 stores in the US.

ABG founder, chair and chief executive Jamie Salter said: “Ted Baker is a highly regarded, uniquely British brand whose strong fashion credibility resonates with consumers around the world.

“We are excited to build on the brand’s global foundation through a business model focused on licensing, wholesale, retail, digital and strategic marketing partnerships. Under ABG’s ownership, we believe that Ted Baker is poised for continued growth and success.”

Ted Baker interim chair Helena Feltham said: “The Ted Baker board believes the offer, which is supported by Ted Baker shareholders with a majority of shares, represents a fair value for shareholders and balances the company’s growth prospects with the risks of the uncertain economic environment in which the business is operating.

“Ted Baker was founded by Ray Kelvin in 1987 and through imagination, creativity, innovation, and a rigorous focus on product design and quality, it has grown into a unique British brand with a strong global presence. The Ted Baker board would like to recognise and thank all those who have contributed to building the brand, including the management team and Ted Baker teams across the world.

“The Ted Baker board believes that ABG will be a strong and supportive owner of the business. We are confident that with ABG’s experience, reach and investment, the Ted Baker brand will be capable of achieving its long-term global potential.”