Kellwood rejects Sun Capital offer

By Lisa Kerner

Charlotte, N.C., Oct. 17 - Kellwood Corp.'s board of directors unanimously rejected Sun Capital Securities Group, LLC's unsolicited proposal to acquire the company for $21 per share.

The board believes the offer "significantly undervalues the strength of Kellwood's expanded portfolio of brands" as well as Kellwood's potential for sales and earnings growth.

"Our board is committed to enhancing shareholder value and the Sun Capital proposal is not consistent with this objective," chairman, president and chief executive officer Robert C. Skinner Jr. said in a company news release.

"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 is a St. Louis-based marketer of apparel and consumer soft goods.

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