Ted Baker has entered an agreement to buy its footwear licence back from Pentland Group after 17 years.
Ted Baker will acquire the issued share capital of No Ordinary Shoes Limited and No Ordinary Shoes USA – the registered names for the companies producing Ted Baker’s footwear – for £13m. An adjustment for net assets, anticipated to be between £4m and £8m, will be payable in cash on completion of the deal.
Pentland has held the exclusive global licence to manufacture and distribute footwear under the Ted Baker brand since 2001.
Sales of Ted Baker footwear for the year to 31 December 2017 totalled £39.8m.
Ray Kelvin, founder and chief executive of Ted Baker, said: “I would like to thank Pentland for their hard work and ‘Tedication’ over the last 17 years, during which they have been close friends of Ted Baker and 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.”
Richard Newcombe, global president of footwear division at Pentland, said: “It’s been a pleasure to have partnered with the Ted Baker team for the last 17 years.
“Since becoming the Ted Baker footwear licensee in 2001, we’ve grown the footwear category by more than 800% and increased distribution from 60 retailer partners in eight markets, to more than 200 in 28 markets. 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.
“We take pride in the role our team has played in the brand’s continued success, and we wish everyone at Ted Baker all the very best for the future.”