Authentic Brands Group, a retail conglomerate that owns brands such as Reebok, Forever 21 and Juicy Couture, has signed a deal to acquire British fashion chain Ted Baker for around £211m ($254m).

The transaction price represents a premium of approximately 18% to Ted Baker’s closing price on Monday. The company is listed on the London Stock Exchange.

Ted Baker said the board would unanimously recommend that shareholders vote in favor of the transaction.

Upon completion, ABG intends to separate Ted Baker’s business into an intellectual property holding company that will continue to be controlled by ABG and one or more operating companies that will manage the brand’s stores, e-commerce and wholesale businesses. I said yes.

ABG also said it would consider options to transfer full or partial ownership and control of some or all of these separate operating companies to other partners.

Tuesday’s announcement settles months of speculation about the future of the British fashion moniker, which was forced to sell earlier this year amid pandemic-related hardships.

Ted Baker rejected several bids from private equity chain Sycamore Partners before embarking on its own sale process. ABG also had discussions with Ted Baker about the deal before exiting.

ABG Chief Executive Officer and Founder Jamie Salter said in a statement released on Tuesday that the Ted Baker brand is “greatly appreciated” by consumers around the world.

“We are excited to build our brand’s global footprint through a business model focused on licensing, wholesale, retail, digital and strategic marketing partnerships.

Ted Baker is also in the midst of his own turnaround plan, citing the continued power of luxury spending even as inflation continues and consumers refrain from spending on other non-discretionary items. I would like to profit from

The strength of luxury retail has fueled M&A activity in the sector, with UK companies becoming more affordable to overseas buyers due to the weaker pound.