Mothercare rejects bid from American competitor | RetailDetail

Mothercare rejects bid from American competitor

Mothercare rejects bid from American competitor

American company Destination Maternity tried to buy British baby chain Mothercare, but both the 340 million euro bid and a visit from the American CEO have failed to impress the large shareholders (so far).

Over 340 million euro: "Inadequate"

"We believe there is a compelling strategic rationale for the combination, which would create the undisputed global leader in maternity, baby and young children's apparel and products", CEO Ed Krell told Mothercare's two most important institutional shareholders (Fidelity and Allianz Global Investors).


He had flown to London from the United States to convince the shareholders to press Mothercare chairman Alan Parker to agree to a take-over. Parker had previously stated that 340 million euro was too low an offer and "did not reflect the inherent value of Mothercare to our shareholders or its prospects for recovery and growth".


"Not interested"

The American had to fly back empty-handed: "We're not interested in a bid. We think it was an inadequate offer well below the true value of the company", Allianz' Simon Gergel said. His partner at Fidelity, Paras Anand, was even more poignant: "Given the absence of a chief executive at Mothercare, the approach by Destination Maternity could clearly be viewed as opportunistic. We would prefer the business to continue on a standalone basis."


It remains to be seen whether Destination Maternity will table a higher bid, something it is allowed to do - under British law - until 30 July. Once that day has passed, it will have to wait another 6 months before it can table another bid.


Mothercare has more than 1,000 stores in 60 countries, partially self-owned and partially as franchise stores. There are two stores in Brussels, both in shopping galleries (Gulden Vlies/Louiza and City2).

Questions or comments? Please feel free to contact the editors

Délifrance joins FFC's portfolio


Dutch Franchise Friendly ConceptsDélifrance Benelux acquisition is in full swing. The franchise organization will obtain the French sandwich chain’s Benelux master franchisee on 1 April.

IKEA has developed actual "bug burger"


SPACE10, furniture giant Ikea’s innovation lab, will present a healthy alternative to the classic hamburger, where the meat is replaced by red beets and mealworm. It is also working on a “dogless hotdog”;

Supermarkets' price difference with neighbouring countries grows


Belgian supermarkets are increasingly more expensive than those in neighbouring countries according to Prijzenobservatorium’s research. Shoppers in France, Germany and the Netherlands quickly pay 10 % less.

Delhaize opens innovative new store in Bucharest


Romanian supermarket chain Mega Image, part of Belgian-Dutch Ahold Delhaize, has opened a new concept store in the centre of Bucharest. The store claims to offer a new level of shopping experience in the heart of the city.

“Meat industry ready for disruption”


Consumers are ready, the technology is rapidly advancing and investors see the potential: meat replacement turnover will reach 4.2 billion euro worldwide by 2020. The major multinationals are now also on board.

Aldi wants to open stores in China


Aldi has had an online presence in China for a year now, but the German discounter is now planning to open a physical store network there as well. Within a few years’ time, it should have fifty different stores.

Back to top