October 5, 2022

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Sycamore Partners has got Ted Baker in its sights

US private equity firm Sycamore Partners is mulling a bid for high street fashion chain Ted Baker.

The London-listed retailer’s share price has jumped following confirmation that the New York-based buyout shop is in the early stage of making a possible cash offer for the company.

Sycamore, which has until 15 April to make a firm offer, specialises in retail investments, having made previous investments in companies such as shoe retailer Kurt Geiger and office supplies group Staples.

Shares in Ted Baker closed up by nearly 9% on 17 March at 98.75p. This morning shares rose further to 117p, valuing the company at just under £215m.

Ted Baker confirmed today that it has not yet received any approach from Sycamore.

The interest marks the latest sign of US buyout appetite for UK assets. A number of private equity firms are also understood to be interested in acquiring UK retail giant Boots.

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At £45.8bn, the cumulative value of the 235 buyouts of UK-based companies last year represented the biggest headline figure in the 35-year history of the Centre for Private Equity and MBO Research (CMBOR), surpassed on an inflation-adjusted basis only by the £44.1bn recorded in 2007.

In retaining its position as Europe’s largest private equity market, by both volume and value, the UK witnessed the same skew towards large-cap buyouts and take-private transactions, with 12 deals valued at over £1bn and public-to-private buyouts of listed companies accounting for five of the 10 biggest deals.

This article was published by Private Equity News

To contact the author of this story with feedback or news, email Sebastian McCarthy