American handbag maker Coach has completed its $2.4bn acquisition of rival fashion design house, Kate Spade & Company, in order to create a luxury lifestyle retailer.
The move will help Coach to further expand its multi-brand portfolio that will be backed by a vast amount of expertise in handbag design, merchandising, supply chain and retail operations along with strong financial acumen.
Coach stated that its history and heritage, multi-channel, global distribution model, and experienced leadership team uniquely place it to achieve long-term sustainable growth for Kate Spade.
As per the transaction terms agreed upon in May, the shareholders of Kate Spade were to be paid $18.50 per share in cash by Coach.
Coach had previously revealed that it would retain the brand independence of Kate Spade and also key talent in the latter for a smoother transition into a combined entity.
Based in New York City, Kate Spade designs and markets accessories and apparel under two international, lifestyle brands named kate spade new york and Jack Spade New York.
Included in the kate spade new york collection are the Broome Street, Madison Avenue and on purpose labels. On the other hand, Jack Spade New York has a wide range of bags, tailored clothing and sportswear.
Also under the Kate Spade fold is the Adelington Design Group which designs and develops private brand jewelry.
Kate Spade’s new owner Coach, which is also headquartered in New York, is into the making and selling of trendy luxury accessories and lifestyle brands. Its products are sold through the Coach stores, specific department stores and specialty stores, and also online through its website.
Its acquisition of Kate Spade comes almost two years after the $530m acquisition of women’s luxury footwear designer and manufacturer Stuart Weitzman from private equity firm Sycamore Partners in May 2015.
Image: Inside a Coach store in San Francisco, California. Photo: courtesy of Fashionmouse/Wikipedia.org.