Ted Baker buys back shoe business from Pentland Group
UK fashion brand Ted Baker has agreed to buy No Ordinary Shoes Limited, and its US subsidiary, from its footwear licence, Pentland Group.
Ted Baker will pay £13 million (US$16.9 million) for the business, along with an adjustment in cash of between £4-8 million for the target companies’ net assets at the date the transaction is settled.
Pentland currently holds the exclusive global licence from Ted Baker to manufacture and distribute footwear under the Ted Baker brand, so the move brings Ted Baker’s footwear business back in-house.
Heralding Pentland’s hard work “and Tedication” over the last 17 years, Ted Baker founder and CEO Ray Kelvin said the companies had worked closely together and Pentland had proven “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,” he said.
Since becoming the Ted Baker footwear licensee in 2001, Pentland has grown the brand’s footwear category by more than 800 per cent and increased distribution from 60 retailer partners in eight markets, to more than 200 in 28 markets.
“It’s been a pleasure to have partnered with the Ted Baker team for the last 17 years,” said Pentland’s global president of footwear, Richard Newcombe.
“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.”
The two target companies achieved sales of £39.8 million in the year to December.