Men’s accessories maker Randa Accessories on Monday offered to buy Perry Ellis International Inc. for $28 per share, 50 cents higher than a competing offer from the apparel brand firm’s founder George Feldenkreis.
The bid, which translates to about $444 million in equity, would be Randa’s biggest-ever deal. The offer represents a 3 percent premium to Perry Ellis‘ closing price on Friday.
Shares of Perry Ellis touched a more than seven-year high of $29.35, before ending up 7.9 percent at $29.33.
Perry Ellis in June agreed to be taken private for $437 million in cash by Feldenkreis. He and his son Oscar Feldenkreis, the chief executive officer, together are the company’s biggest investors.
“We are waiting for a response (from Perry Ellis),” David Katz, Randa’s chief marketing officer, told Reuters.
“We are hopeful that they will appreciate that our offer is 50 cents higher than their current offer and that we are ready able and capable of doing this deal,” Katz said.
Perry Ellis said it had received the unsolicited proposal from Randa and that its special committee comprising its board members would review and evaluate the offer.
Randa, which houses licenses for popular brands such as Levi’s, Timberland and Tommy Hilfiger, was founded more than a century ago by two brothers who sold neckties from a pushcart on the lower east-side of Manhattan.
Katz said the company had both an asset-based loan from one of the major banks and a term loan commitment to fund the all-cash deal.
Threadstone Partners LP is serving as Randa’s financial adviser and Willkie Farr & Gallagher LLP is its legal adviser.
PJ Solomon is serving as financial adviser to the Perry Ellis‘ special committee and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Akerman LLP are its legal advisers.
(Reporting by Aishwarya Venugopal and Siddharth Cavale in Bengaluru; Editing by Shailesh Kuber and Maju Samuel)