- Prachi Singh |
Ted Baker, has announced that on September 7, 2018, it entered into an agreement with Pentland Group Plc, the company's footwear licensee since 2001, to acquire the issued share capital of No Ordinary Shoes Limited and No Ordinary Shoes USA LLC for an aggregate consideration of 13 million pounds (17 million dollars), an adjustment for net assets of the two companies as at completion date, anticipated to be between 4-8 million pounds, payable in cash on completion of acquisition.
Commenting on the development, Ray Kelvin CBE, Founder and Chief Executive of Ted Baker, said in a statement: "I would like to thank Pentland for their hard work and dedication 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."
Pentland currently holds the exclusive global licence from Ted Baker to manufacture and distribute footwear under the Ted Baker brand. Accordingly, following completion of this acquisition, Ted Baker added that it will bring its footwear licence back in-house. The company added that the aggregated sales of the two companies for the year ended December 31, 2017 totalled 39.8 million pounds (52 million dollars). The acquisition, Ted Baker said, will be financed by the company's existing bank facilities and is expected to enhance the earnings of Ted Baker in FY2019/20 and beyond.
"It's been a pleasure to have partnered with the Ted Baker team for the last 17 years. Since becoming the Ted Baker footwear licensee in 2001, we've grown the footwear category by more than 800 percent and increased distribution from 60 retailer partners in 8 markets, to over 200 in 28 markets,” added Richard Newcombe, Global President of Footwear Division at Pentland.