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Perry Ellis Ends Takeover Talks with Randa, Commits to Feldenkreis Offer

A special committee of the Perry Ellis International board of directors has ended discussions with Randa Accessories Leather Goods on its unsolicited bid made in July to acquire all outstanding common stock of Perry Ellis for $28.90 per share in cash.

At the same time, the Perry Ellis board reiterated its commitment to an offer from former CEO and chairman George Feldenkreis to purchase the company and take it private. In June, the company’s board of directors approved a $437 million transaction that would take it private through an acquisition led by Feldenkreis.

Under the terms of the Feldenkreis merger agreement, Perry Ellis unaffiliated shareholders will receive $27.50 per share in cash upon closing. The purchase price represents a premium of roughly 21.6% to Perry Ellis’ unaffected closing stock price on Feb. 5, 2018, the last trading day prior to Feldenkreis announcing his proposal to take the company private.

“The special committee continues to believe that the Feldenkreis merger agreement is in the best interest of all Perry Ellis shareholders,” the company said.

When Feldenkreis first made his offer in February, he wrote in a letter to the board that said private ownership would greatly benefit the company in the long run and allow it to execute a “long-term value creation strategy.”

The deal is subject to regulatory approval and is expected to close this year. Feldenkreis, who remains the largest shareholder of the company, launched Perry Ellis as Supreme International Corp. in Miami 50 years ago. His son, Oscar Feldenkreis, is CEO and president of the company.