Perry Ellis stresses commitment to Feldenkreis deal

After Randa Accessories made a bid for Perry Ellis with an all cash deal of 444 million dollars, Perry Ellis announced this morning that they are stressing their investors to stick with the original Feldenkreis deal of 437 million dollars that would be done through debt and equity. The news was reported by Reuters.

The issues Perry Ellis International Inc found with the Randa offer was that it was missing stipulations that are part of the Feldenkreis agreement, including the granting of due diligence access and negotiations about a competing takeover proposal. In other words, there was a lack of reasonable steps presented in their legal requirements to acquire the company.

The committee evaluating the offers was uncertain of Randa’s debt refinancing commitments, and they were also skeptical of the lack of sufficient evidence of cash on hand. Randa licenses many top brands from Tommy Bahama to Timberland, but 444 million dollars in cash is a lot to toss at a deal out of nowhere.

“A number of other terms affecting shareholder value or certainty are inferior, including terminations fees, additional risks to closing, and lack of apprails rings for shareholders,” the committee said in a statement to Reuters.

Randa said it can close this all cash deal through an asset-based loan and term loan commitment. They were not immediately available for comment.

Photo: Courtesy of the brand/ Jonathan Hokklo