TED.L Share News (TED)

(Sharecast News) - Fashion retailer Ted Baker has agreed to buy No Ordinary Shoes from its footwear licensee Pentland for £13m plus an adjustment for net assets expected to be between £4m and £8m, payable in cash on completion.Pentland, which has been the company's licensee since 2001, currently holds the exclusive global licence from Ted Baker to manufacture and distribute footwear under the Ted Baker brand. Following the deal, which the company plans to finance through existing bank facilities, Ted Baker will bring its footwear licence back in-house.For the year ended 31 December 2017, aggregated sales for No Ordinary Shoes totalled £39.8m. The acquisition is expected to enhance Ted Baker's earnings in FY2019/20 and beyond.Following completion, No Ordinary Shoes will be integrated into Ted Baker's current operations.Founder and chief executive Ray Kelvin said: "I would like to thank Pentland for their hard work and Tedication over the last 17 years during which they have been close friends of Ted Baker and trusted custodians of the brand."This is an exciting opportunity for Ted Baker to drive further growth in our footwear business by leveraging our global footprint and infrastructure, in line with our strategy to further develop Ted Baker as a global lifestyle brand."Richard Newcombe, global president of the footwear division at Pentland, said: "Since becoming the Ted Baker footwear licensee in 2001, we've grown the footwear category by more than 800% and increased distribution from 60 retailer partners in 8 markets, to over 200 in 28 markets. We have worked closely with the team at Ted to ensure our strategies are perfectly aligned, and that the product captures what makes Ted Baker such a special and unique brand."We take pride in the role our team has played in the brand's continued success, and we wish everyone at Ted Baker all the very best for the future."At 1130 BST, the shares were up 0.5% to 2,180p.