Coach Acquires Stuart Weitzman for $574M
Coach, a designer fashion company, will buy women's luxury footwear company Stuart Weitzman to expand its high-end offerings to better compete with rivals, including Michael Kors and Kate Spade. The company is known for its signature handbags and will acquire Stuart Weitzman from private equity firm Sycamore Partners in a deal valued at $574 million.
Companies such as Michael Kors and Kate Spade have cut into Coach's New York-based market share in North America with affordable and trendier handbags and accessories. This year, Coach will realign its business by cutting promotions and shuttering underperforming stores.
Sycamore Partners acquired Stuart Weitzman last year as part of its $2.2 billion purchase of Jones Group, the fashion company that owns retail chains Nine West and Jones New York.
Coach has stated that it will make an initial cash payment of $530 million to Sycamore Partners, and pay the remaining $44 million as certain revenue targets are achieve for the first three years following the close of the acquisition.
Companies such as Michael Kors and Kate Spade have cut into Coach's New York-based market share in North America with affordable and trendier handbags and accessories. This year, Coach will realign its business by cutting promotions and shuttering underperforming stores.
Sycamore Partners acquired Stuart Weitzman last year as part of its $2.2 billion purchase of Jones Group, the fashion company that owns retail chains Nine West and Jones New York.
Coach has stated that it will make an initial cash payment of $530 million to Sycamore Partners, and pay the remaining $44 million as certain revenue targets are achieve for the first three years following the close of the acquisition.