My finance view

The way is now paved for Sun Capital Securities Group to buy Kellwood Co. and turn the publicly traded Town and Country apparel manufacturer into a private company.

Sun Capital said its $21 per share offer for Kellwood stock, which ended Tuesday, was successful. About 70.5 percent of Kellwood’s outstanding shares were sold. When added to Sun Capital’s existing 11.4 percent stake, the investment firm will hold about 81.9 percent of Kellwood’s outstanding shares.

Additional shares were guaranteed to be delivered by Friday night to give Sun Capital more than 90 percent of Kellwood’s shares.

Kellwood’s shares closed Wednesday at $21.01, up 4 cents on the New York Stock Exchange. The company had no comment.

The $542 million acquisition is being carried out by Sun Capital’s Cardinal Integrated LLC. Cardinal has begun an offer period, expiring 11 p.m online cash advance. Central time Friday, for the remaining shares.

After the offer period ends, each share not purchased will be converted into the right to receive $21 in cash.

After the buyout, Kellwood will become a subsidiary of Cardinal Integrated and Kellwood’s stock will be delisted.

Although Kellwood twice had rejected Sun Capital’s offer as too low, it agreed to the takeover after no higher bids surfaced.

Once primarily known for Sag Harbor and other moderately priced labels, Kellwood has been restructuring to cut costs and build its higher-priced clothing business. Sun Capital said it aims to strengthen Kellwood.

gappleson@post-dispatch.com | 314-340-8331

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