Ted Baker to Bring Footwear Business In-House
Fashion brand Ted Baker has agreed a deal worth up to £21m to bring its footwear licence back in-house.
Ted Baker London is a global lifestyle brand that offers menswear, womens wear, accessories.
The listed business has entered into an agreement with Pentland Group, its footwear licensee since 2001, to acquire No Ordinary Shoes Ltd and No Ordinary Shoes USA LLC for £13m, plus an adjustment for net assets in place at the completion date, which is anticipated to be between £4m to £8m.
Pentland currently holds the exclusive global licence from Ted Baker to manufacture and distribute footwear under the Ted Baker brand.
The aggregated sales of No Ordinary Shoes Ltd and No Ordinary Shoes USA LLC for the year tro 31 December 2017 totalled £39.8m.
Following completion on 31 December 2018, No Ordinary Shoes Ltd and No Ordinary Shoes USA will be integrated into Ted Baker’s current operations.
Ray Kelvin, founder and chief executive of Ted Baker, said: “I would like to thank Pentland for their hard work and Tedication over the last 17 years during which they have been close friends of Ted Baker and trusted custodians of the brand.
“This is an exciting opportunity for Ted Baker to drive further growth in our footwear business by leveraging our global footprint and infrastructure, in line with our strategy to further develop Ted Baker as a global lifestyle brand.”
Richard Newcombe, global president of footwear division at Pentland, said: “Since becoming the Ted Baker footwear licensee in 2001, we’ve grown the footwear category by more than 800 per cent and increased distribution from 60 retailer partners in eight markets, to over 200 in 28 markets.
“We have worked closely with the team at Ted to ensure our strategies are perfectly aligned, and that the product captures what makes Ted Baker such a special and unique brand.”
Pentland is the name behind some of the world’s best active and footwear brands. It is a a third-generation, family-owned business – and we retain strong family values.
Image source: https://footwearnews.com/2018/business/mergers-acquisitions/ted-baker-shoes-in-house-pentland-1202674994/