18 November, 2019 - 20 November, 2019
20 November, 2019 - 23 November, 2019
22 November, 2019 -
Amsterdam, The Netherlands
03 December, 2019 - 05 December, 2019
New York NY, U.S
04 December, 2019 - 05 December, 2019
New York based design house of modern luxury accessories Coach announced it has signed a definitive agreement to acquire multichannel lifestyle brand Kate Spade.
Unanimously approved by the Boards of Directors of Kate Spade & Company and Coach Inc, the total transaction value stands at US$2.4 billion, which is not subject to a financing condition and is expected to be funded by a combination of senior notes, bank term loans and approximately US$1.2 billion of excess Coach cash, a portion of which will be used to repay an expected US$800 million 6-month term loan.
“The combination of Coach, Inc. and Kate Spade & Company will create a leading luxury lifestyle company with a more diverse multi-brand portfolio supported by significant expertise in handbag design, merchandising, supply chain and retail operations as well as solid financial acumen”, said a statement.
Through its history and heritage, multi-channel, international distribution model, Coach aims to drive long-term sustainable growth for Kate Spade and says it is focussed on preserving Kate Spade’s brand independence as well as retaining key talent, ensuring a smooth transition to Coach Inc.’s ownership.
Sales for the Coach brand totalled US$915 million for the third fiscal quarter, representing a decrease of approximately 4% on a reported and constant currency basis, as the planned strategic actions in the North America wholesale channel are said to have negatively impacted sales growth. Read more here.