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Sun Capital asks Kellwood stockholders to participate in tender offer
By Lisa Kerner
Charlotte, N.C., Feb. 6 - Sun Capital Securities Group, LLC, in an open letter to fellow Kellwood Co. shareholders, urged them to tender their shares in Sun Capital's previously announced $21-per-share all-cash tender offer.
Total value of the offer is about $762 million, including debt.
Sun Capital noted its offer is not contingent on financing or due diligence and is a 38% premium to Kellwood's stock price when Sun Capital first proposed the acquisition on Sept. 18.
Cardinal Integrated, LLC, a Sun Capital affiliate, began its unsolicited tender offer for all of the outstanding shares of Kellwood on Jan. 15.
The tender offer is slated to end at midnight ET on Feb. 12, according to a schedule 13D filing with the Securities and Exchange Commission.
On Jan. 28, Kellwood said it would remove all impediments to the offer.
As previously reported, Kellwood expects to rescind its debt tender offer and take action under its shareholder rights plan in order for the deal to close on Feb. 12, if a majority of its shares are tendered.
Kellwood's financial advisers were seeking an alternative transaction with a value above the $21-per-share offer price by contacting third parties as well as Sun Capital.
Sun Capital has a 9.9% ownership interest in the St. Louis-based apparel and consumer soft goods marketer.
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