Digital Brands Group receives unsolicited buyout proposal

US apparel and e-commerce business Digital Brands Group, Inc. (DBG) has confirmed receipt of an unsolicited buyout proposal to acquire all outstanding shares of common stock for 77.58 dollars per share in cash.

The acquisition offer was submitted by an existing shareholder with a net worth exceeding one billion dollars. The proposal represents a premium of approximately 258 percent over the company’s trading price of 21.63 dollars prior to the announcement.

The proposal comes amid the Austin, Texas-based company’s ongoing review of strategic alternatives and follows the expansion of its secured US government program to 165 million dollars. The expanded contract, which grew 32 percent with the addition of new apparel and footwear categories, adds 40 million dollars in incremental revenue.

Board of directors evaluates strategic options with financial advisor

The board of directors of DBG is evaluating the proposal in consultation with its recently appointed financial advisor, investment banking firm Roth Capital Partners, to determine the appropriate course of action for the company and its shareholders.

DBG cautioned shareholders and investors that the board has only recently received the offer and has not reached a decision regarding its response. There is no assurance that a definitive agreement will be executed or that any transaction will be approved or completed.

Management has not established a fixed timeline for the evaluation process and stated it does not intend to provide further updates unless the board approves a specific course of action or formal disclosure becomes necessary.

DBG manages a portfolio of lifestyle apparel brands—including Stateside, Sundry, Bailey 44, DSTLD, and AVO Studio—combining direct-to-consumer e-commerce channels with selective wholesale distribution networks.