Kellywood Rejects Unsolicited Proposal

Kellywood Company, a marketer of apparel and consumer soft goods, announced that its board unanimously determined that an unsolicited proposal by Sun Capital Securities Group, LLC, is not in the best long-term interest of the company and its shareholders.

 

Kellywood's decision comes after consideration of the proposal, of which Sun Capital would pursue an acquisition of Kellywood at $21 per share, and taking into account the potential benefits that may be realized through the company's previously announced long-term strategic plan.

  

"Our Board is committed to enhancing shareholder value," said Kellywood Chairman, President and CEO Robert C. Skinner, Jr., in a recent statement,  "and the Sun Capital proposal is not consistent with this objective. 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."