UK lifestyle brand Ted Baker has entered into an agreement with Pentland Group to buy back its footwear licence after 17 years, as part of its bid to drive further growth in its footwear business.
In a statement today (10 September), Ted Baker said it plans to acquire the issued share capital of No Ordinary Shoes Limited and No Ordinary Shoes USA LLC for GBP13m (US$16.8m).
Pentland currently holds the exclusive global licence to manufacture and distribute footwear under the Ted Baker brand but, following completion of the acquisition, Ted Baker will bring its footwear licence back in-house.
The aggregated sales of the footwear business for the year ended 31 December 2017 totalled GBP39.8m
Ted Baker says the acquisition will be financed by its existing bank facilities and is expected to enhance group earnings from FY2019/20.
“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,” said Ted Baker founder and CEO Ray Kelvin CBE.
Richard Newcombe, global president of footwear division at Pentland, added that since becoming the Ted Baker footwear licensee in 2001, the group has grown the footwear category by more than 800% and increased distribution from 60 retailer partners in eight markets, to over 200 in 28 markets.