Kellwood, Sun Capital reach agreement

ST. LOUIS -- Five months after a private investment company first made a takeover bid for the apparel maker Kellwood Co., the two sides said Monday they've reached a $542 million merger agreement.

At first, St. Louis-based Kellwood opposed the takeover. But in January, Kellwood said it would let shareholders decide. On Monday, Kellwood said its board agreed to the merger because the offer is fair, there were no superior bids, and because the company expects the majority of stockholders to tender their shares.