Kellwood rejects takeover bid
The board of directors at St Louis-based apparel manufacturer Kellwood Co. has unanimously rejected a $21 per share unsolicited takeover offer from Florida-based Sun Capital Securities Group, LLC.
The board felt the offer "significantly undervalues the strength of Kellwood's expanded portfolio of brands and the company's opportunities for sales and earnings growth."
However, the board claims it carefully considered the proposal, the offer price for which translates at approximately $543 million. Sun Capital is the second largest shareholder in the company with a 9.9% stake.
The group also revealed a plan to reorganise the women's sportswear businesses by restructuring to create three operating divisions from the existing seven.
Kellwood posted a second quarter net loss of $65.8 million compared with net earnings of $7.2 million in the prior-year quarter. Meanwhile, net sales increased to $465.4 million from $459.6 million.
