Date
11 December 2017
Coach's deal for Stuart Weitzman is part of the former's efforts to position itself as a high-end lifestyle brand. Photo: Bloomberg
Coach's deal for Stuart Weitzman is part of the former's efforts to position itself as a high-end lifestyle brand. Photo: Bloomberg

Coach acquires shoemaker Stuart Weitzman for US$574 mln

Coach Inc. (06388.HK), the New York-based luxury handbag maker, has agreed to buy designer footwear company Stuart Weitzman for up to US$574 million in cash.

The agreement was sealed with private-equity firm Sycamore Partners, which currently controls Stuart Weitzman following the acquisition of the Jones Group last year.

Under the deal, Coach will pay about US$530 million to Sycamore initially, while US$44 million will be paid upon the achievement of revenue targets during the three years after the acquisition closes, according to Bloomberg News.

The transaction is expected to close by May. 

Stuart Weitzman sells shoes in 70 countries and in its own retail stores in the US and Europe. Its top sellers include the US$795 Highland suede boots.

The transaction marks a rare acquisition by Coach, which has embarked on a turnaround that includes ending discounts and transforming itself into an upscale lifestyle brand, the New York Times noted.

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RC

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