Coach to acquire Kate Spade
Coach, the US luxury accessories brand, has entered into an agreement to buy Kate Spade & Company.
Under the terms of the transaction, Kate Spade shareholders will receive $18.50 per share in cash for a total transaction value of $2.4 billion.
Coach said the acquisition will help it to create a leading luxury lifestyle company with a more diverse multi-brand portfolio. In addition, it is planning to use its extensive experience in opening and operating worldwide retail stores and brand building to unlock Kate Spade’s largely untapped international growth potential.
The company said it will preserve Kate Spade’s brand independence and retain key personnel to ensure a smooth transition into Coach’s ownership.
Victor Luis, Coach chief executive, said: “The acquisition of Kate Spade is an important step in Coach’s evolution as a customer-focused, multi-brand organization. The combination enhances our position in the attractive global premium handbag and accessories, footwear and outerwear categories, bringing product, brand positioning and customer diversification to the portfolio, and establishing scale in key functions with the resources to invest in talent and innovation.“
Kate Spade & Company operates principally under two global, multichannel lifestyle brands: Kate Spade New York and Jack Spade New York.
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