- Kristopher Fraser |
Everything's coming up nothing for Randa. Perry Ellis has announced they have ended talks with the accessories maker about a potential deal to be bought by them. Instead, Perry Ellis will be sticking with the original offer by its second-largest shareholder and founder George Feldenkreis as reported by Business of Fashion.
Perry Ellis made the decision after a licensor refused to consent to Randa's acquisition of the company, sending their stocks down 5.2 percent to 27 dollars and 58 cents in morning trading. Randa had raised their initial offer 90 cents to 460 million dollars. Perry Ellis set a precondition that they would need to speak with the licensor before a formal deal could be made.
Randa had originally offered Perry Ellis a 5.1 percent premium to the Feldenkreis deal, with Feldenkreis offering to buy the company for 437 million dollars.
"Based on communications received from the company's key inbound licensor, it became clear that the key inbound licensor precondition to the (Randa) proposal is not likely to be satisfied," a special committee formed by Perry Ellis to look into the proposals said in a statement on Monday, adding that Randa had also refused to waive the precondition. The special committee also also said they will continue to back to Feldenkreis deal.
“While we cannot comment on the potential sale of Perry Ellis International, Randa has clearly demonstrated our desire to invest in further strategic acquisitions as well as our ability to finance sizable deals,” David Katz, chief marketing officer for Randa, said to Bloomberg.
“We look forward to remaining active in the M&A market as we leverage our platform to build Randa for the future,” Katz added.