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Randa bids for Perry Ellis
Posted on Tuesday, 03 July 2018 14:33
Illinois-headquartered clothing products maker Randa Accessories has submitted an approach to acquire Perry Ellis, the men’s apparel player based in Miami.
Under the terms of the proposed bid, the buyer would pay USD 28.00 per share for the Nasdaq-listed business, thereby valuing the company at USD 439.34 million.
The offer represents a 3.1 per cent premium to the target’s close of USD 27.17 on 29th June, the last trading day prior to the deal being announced.
Randa chief executive Jeffrey Spiegel said the move will enable the company to grow its brand portfolio by adding big names such as Original Penguin.
The company’s approach follows an earlier bid for the business from George Feldenkreis, in partnership with Fortress Investment Group.
Under the terms of that approach, the suitors offered to pay USD 27.50 in cash per item of stock, equating to a total bid price of USD 437.00 million.
Perry Ellis’ board has already given its unanimous seal of approval to that bid, although the prospective target said it will now review the proposal from Randa and advised shareholders to take no action at this time.
Spiegel noted that he believes Randa’s offer represents a superior alternative to Feldenkreis and Fortress’ proposal.
Perry Ellis claims to be a leading designer, distributor and licensor of a broad line of high quality men's and women's apparel, accessories and fragrances.
Its brands include Manhattan, John Henry, Rafaella and Ben Hogan, which span an offering comprising dress and casual shirts, golf sportswear, sweaters and dress and casual pants.
Perry Ellis posted net sales of USD 825.09 million for the year ended 28th January 2017, down from USD 864.81 million over the preceding 12 months.
Gross profit for the period stood at USD 318.51 million, compared to USD 319.07 million in the 12 months to 30th January 2016.
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