Kellwood rejects buyout bid

ST. LOUIS, Mo. Kellwood announced Wednesday that its board of directors has unanimously rejected Sun Capital Securities Group's unsolicited buyout proposal, citing that it is not in the best long-term interests of Kellwood and its shareholders.

This decision comes after Sun Capital set its sights on the company, looking to acquire it at $21 per share, or $543.9 million.

Kellwood's board of directors conducted a detailed review of the company's strategy for enhancing shareholder value and concluded that the proposal significantly undervalues the strength of Kellwood's expanded portfolio, the company said in a release.

"Our board is committed to enhancing shareholder value, and the Sun Capital proposal is not consistent with this objective," said Robert Skinner, Jr., chairman, president and ceo. "We continue to believe that executing our corporate strategy to reinvigorate our core business, expand our penetration into higher profile, better and above price point brands, connect more directly with consumers, and utilize our operating infrastructure more efficiently to fund our growth will deliver greater value to our shareholders."

Kellwood, a $2 billion marketer of apparel and consumer soft goods, specializes in branded as well as private label products, and markets to all channels of distribution with product specific to a particular channel.