Report: Perry Ellis gets buyout bid from familiar source
Perry Ellis International’s former chairman wants to buy back the company he founded — and take it private.
The company’s former chairman, George Feldenkreis offered to buy the clothing company for $430 million. The deal would be financed with a combination of debt and equity, according to Reuters.
According to a Securities and Exchange filing, Feldenkreis, together with the financial backing of Fortress Investment Group LLC, offered to acquire all of the shares for $27.50 per share, in cash. This represents a premium of approximately 22% over the closing price on February 5, 2018. Feldenkreis is the company’s largest shareholder, owning 11.3% of the company’s outstanding common stock.
Fortress’ backing will help fund Perry Ellis’ future acquisitions, new licenses and an aggressive organic growth strategy — moves that will support Feldenkreis’ plan to take the company private, according to his letter to shareholders.
“I am not prepared to stand by and see my economic interest mismanaged. After careful consideration and analysis, I believe the most favorable alternative for all stakeholders is a ‘going private’ transaction that I propose herein with the financial support of Fortress Credit Advisors LLC,” the letter said. “I believe that the company, its licensees and its employees would benefit greatly in the long run from private ownership, which would enable the company to execute a long-term value creation strategy.”
Feldenkreis is making the move in an attempt to keep the brand relevant “in the midst of unprecedented disruption and competition that necessitate conviction in strategy and long-term orientation toward investment in our brands, capabilities and people,” the letter added. “I am not comfortable with the motivations, strategy and oversight of the existing board, and believe shareholder value will suffer under this board’s stewardship.”
The offer comes approximately six months after Feldenkreis was ousted from the company, when the role of chairman was eliminated. He took the position in April 2016 when his son, Oscar Feldenkreis took over as the company's president and CEO. Feldenkreis remains on the company’s board of directors, according to South Florida Business Journal.
The company’s former chairman, George Feldenkreis offered to buy the clothing company for $430 million. The deal would be financed with a combination of debt and equity, according to Reuters.
According to a Securities and Exchange filing, Feldenkreis, together with the financial backing of Fortress Investment Group LLC, offered to acquire all of the shares for $27.50 per share, in cash. This represents a premium of approximately 22% over the closing price on February 5, 2018. Feldenkreis is the company’s largest shareholder, owning 11.3% of the company’s outstanding common stock.
Fortress’ backing will help fund Perry Ellis’ future acquisitions, new licenses and an aggressive organic growth strategy — moves that will support Feldenkreis’ plan to take the company private, according to his letter to shareholders.
“I am not prepared to stand by and see my economic interest mismanaged. After careful consideration and analysis, I believe the most favorable alternative for all stakeholders is a ‘going private’ transaction that I propose herein with the financial support of Fortress Credit Advisors LLC,” the letter said. “I believe that the company, its licensees and its employees would benefit greatly in the long run from private ownership, which would enable the company to execute a long-term value creation strategy.”
Feldenkreis is making the move in an attempt to keep the brand relevant “in the midst of unprecedented disruption and competition that necessitate conviction in strategy and long-term orientation toward investment in our brands, capabilities and people,” the letter added. “I am not comfortable with the motivations, strategy and oversight of the existing board, and believe shareholder value will suffer under this board’s stewardship.”
The offer comes approximately six months after Feldenkreis was ousted from the company, when the role of chairman was eliminated. He took the position in April 2016 when his son, Oscar Feldenkreis took over as the company's president and CEO. Feldenkreis remains on the company’s board of directors, according to South Florida Business Journal.