Ted Baker has agreed to a £211 million (€250 million) acquisition by Authentic Brands Group, the US owner of Reebok and Juicy Couture.

Shares of the British fashion brand surged Tuesday morning after confirming a deal following months of acquisition speculation.

Ted Baker’s board has told shareholders it is recommending a deal of 110p (€1.30) per share.

If confirmed, the deal would be almost a third less valuable than the 160 pence (€1.90) per share approach ABG was considering in May.

Nonetheless, this represents a significant premium compared to Ted Baker’s current share price, which has plunged since the beginning of the year.

The retailer, which has about 400 stores, began a formal sale process in April following a series of approaches to the brand by U.S. private equity firm Sycamore and interest from a number of other interested buyers. did.

Ted Baker chose the preferred bidder, but his stock fell after the unnamed frontrunner pulled out in June.

Helena Feltham, interim chairman of Ted Baker, said:

“The process has been thorough and has captured the world’s attention.

“Today we are announcing an all cash offer from ABG.

“Ted Baker’s Board of Directors believes that the proposal, supported by majority-owned Ted Baker shareholders, represents fair value to shareholders, and is consistent with the company’s growth prospects and the uncertainties in which it operates. We believe we are balancing the risks of the economic environment.”

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