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Randa sweetens offer for Perry Ellis
Posted on Monday, 06 August 2018 10:13
Perry Ellis has granted Randa Accessories Leather Goods access to its books following a sweetened USD 458.60 million offer representing the privately-held suitors’ latest attempt to derail a previously agreed takeover by George Feldenkreis for USD 437.00 million. The Nasdaq-listed men’s and women’s clothing, accessories and fragrance company designs, distributes and licences dress and casual shirts, shorts, jeans wear, trousers and dresses, among other things. Perry Ellis’ portfolio of brands comprises its namesake label, as well as banners ranging from An Original Penguin by Munsingwear and Cubavera to Ben Hogan and Rafaella. For the financial year ended 3rd February 2019, the company currently expects total revenue to be in the range of USD 855.00 million to USD 865.00 million, which compares to core business sales of USD 844.00 million in FY 2018. It had net debt to total capitalisation of 18.9 per cent at the end of Q1 2019, compared to 24.3 per cent at the end of Q1 2018. Feldenkreis, with the financial backing of Fortress Investment, made an acquisition proposal in February as he was not “comfortable with the motivations, strategy and oversight of the existing board”. Over the intervening months, Randa, which claims to be the largest producer of men’s accessories, such as leather belts, wallets, gloves and slippers, has sought to scupper the USD 27.50 apiece offer by the founder and former chairman of Perry Ellis. Its first proposal of USD 28.00 at the beginning of July was rebuffed as being “highly-conditional, non-binding and insufficient in terms of value”, not to mention “not in the best interest of shareholders”. However, its latest revised, unsolicited approach of USD 28.90 each has prompted Perry Ellis’ special committee to at least grant Randa due diligence access, despite still unanimously recommending Feldenkreis’ offer. © Zephus Ltd