THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Mothercare rejects £226 million takeover offer from Destination Maternity

Mothercare has rejected two takeover proposals from Destination Maternity, the US maternity products retailer and owner of the 'A Pea in the Pod' clothing brand.

GENERAL MERCHANDISE

Mothercare rejects £226 million takeover offer from Destination Maternity

Mothercare has rejected two takeover proposals from Destination Maternity, the US maternity products retailer and owner of the 'A Pea in the Pod' clothing brand.

Destination Maternity, which operates 578 stores, revealed that it had put forward two proposals about a possible merger of the two companies, both of which were rejected by the Mothercare board.

The first proposal was submitted in May while a later proposal put forward on 1 June involved an increased offer of 300 pence per share that valued the company at £266 million.

In a statement issued today, Destination Maternity said the two businesses were “highly complementary” which together could provide a global platform to expand both Destination Maternity's maternity apparel business and Mothercare's baby and children's business.

Destination Maternity chief executive Ed Krell said: "We believe there is a compelling strategic rationale for a combination of Destination Maternity and Mothercare, which would create the undisputed global leader in maternity, baby and young children's apparel and products.

“We believe the combination would create a highly attractive opportunity to accelerate the growth and development of both businesses and generate substantial value for our respective shareholders. Given this, we are seeking to engage with the board of Mothercare on a constructive basis with the goal of completing a recommended transaction."

Mothercare, which also operates the Early Learning Centre stores, has been working to turn its UK business around by closing loss-making stores and improving its product range and multi-channel services.

In response to today's announcement by Destination Maternity, Mothercare chairman Alan Parker said: "The board has given these proposals full and thorough consideration. We do not believe they reflect the inherent value of Mothercare to our shareholders or its prospects for recovery and growth.  In addition, we have significant concerns about the deliverability of these proposals. Mothercare has a very strong and valuable international business and significant potential for sustained improvement in the UK."

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019