Carter's, Inc. (NYSE: CRI) has announced the adoption of a limited duration stockholder rights agreement in response to the rapid accumulation of a significant amount (16.86%) of the common stock of the company by RWWm, Inc. This move has been made to promote fair and equal treatment of all stockholders and to ensure that the board remains in the best position to discharge its fiduciary duties.
Under the rights agreement, Carter's will issue one preferred share purchase right for each outstanding share of its common stock to stockholders of record on the close of business on October 3, 2025. The rights will not be exercisable initially and will trade with, and be represented by, the shares of Carter’s common stock. The rights agreement is set to expire on September 21, 2026.
If an acquiring person or group acquires beneficial ownership of 15% or more of the outstanding shares of Carter’s common stock in a transaction not approved by the board, the board may exchange each right or the holders of the right will be entitled to purchase additional shares of the company's common stock at a fifty percent discount to the market price of the stock. The rights also become exercisable if Carter’s is acquired in a merger or other business combination after an unapproved party acquires more than 15% of the outstanding shares of Carter’s common stock.
Carter’s, Inc. is North America’s largest apparel company exclusively for babies and young children, with core brands such as Carter’s and OshKosh B’gosh, sold through more than 1,000 company-operated stores in the United States, Canada, and Mexico, as well as online. The company’s emerging brands include Little Planet, Otter Avenue, and Skip Hop.
The company's stock (NYSE: CRI) closed at $88.52 on September 23, 2025, and the press release was announced on September 24, 2025. It's important to note that the company's stock price and market capitalization may have been impacted by this news. As a result of these announcements, the company's shares have moved -1.35% on the market, and are now trading at a price of $29.11. Check out the company's full 8-K submission here.
