Kellwood's Board of Directors has unanimously determined that the Sun Capital Securities Group unsolicited proposal is not in the best long-term interests of Kellwood and its shareholders. This decision comes after careful consideration of the unsolicited proposal of Sun Capital to pursue an acquisition of the Company at a price of $21 per share, and taking into account the potential benefits that may be realized through the Company's previously announced long-term strategic plan.
Kellwood's Board of Directors conducted a detailed review of the Company's strategy for enhancing shareholder value. Their review included consultation with the Company's independent financial advisor — Banc of America Securities LLC. The Board of Directors concluded that the unsolicited Sun Capital proposal significantly undervalues the strength of Kellwood's expanded portfolio of brands and the Company's opportunities for sales and earnings growth.
“Our Board is committed to enhancing shareholder value,” stated Robert C. Skinner, Jr., chairman, president and chief executive officer, “and the Sun Capital proposal is not consistent with this objective. 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. Our Board is determined to enable all of its shareholders to participate in these future benefits resulting from the Company's sales and earnings growth strategy.”
