New bid for Ellis
Designer in style and desired anew
Perry Ellis is suddenly hot again — at least in the financial world.
A bidding war for the 40year-old brand erupted Monday between licensing firm Randa Accessories and Perry Ellis’ former chief and largest investor, George Feldenkreis, who two weeks ago won board approval to take the firm private.
Randa’s $28-a-share bid is only 50 cents a share above the Feldenkreis deal, which is valued at $437 million.
“With only a 2 percent premium, it’s not really that exciting an offer,” said Small Cap Consumer Research’s Eric Beder.
Apparently, the Perry Ellis board and investors agree as the stock jumped almost 8 percent, to close at $29.33.
“Perry Ellis remains subject to the Feldenkreis merger agreement,” the company said in a statement, advising that shareholders “need take no action at this time.”
What appeared to be an eleventh-hour offer by Randa, a Big Apple-based company focused on menswear, was in fact a deal that was in the works for several months, sources said.
Randa, which is a licensee for such brands as Levi’s, Tommy Hilfiger and Timberland, also handles Perry Ellis accessories in the United Kingdom.
“Randa is keenly interested in growing its portfolio of owned and licensed brands,” the company said in a letter to Perry Ellis.
The Feldenkreis family, which includes George’s son, Oscar, owns about 30 percent of the company, according to Beder.
Our offer “needs to be taken seriously,” Randa Chief Marketing Officer David Katz told The Post.
Over the past several years, the Feldenkreis family has fended off activist investors who have claimed that they wielded too much control and used the company as a piggy bank. As a result, George Feldenkreis stepped down as chief executive in 2016, installing his son at the helm, and several independent directors were appointed.