Coach to acquire Kate Spade for 2.4 Billion
Coach, the American maker of high-end accessories, said on Monday that it would buy the rival fashion house Kate Spade in a $2.4 billion deal, the latest in a series of acquisitions aimed at building an accessible luxury group.
The deal confirms months of speculation on Wall Street, with Coach — once a leading light in American retail but which has struggled in recent years against heightened competition, its own discounting of products and a bloated store network — adding a brand known for its bright, girlie aesthetic.
Coach said that it was offering $18.50 per share in cash for Kate Spade, a premium of 9 percent on the closing price on Friday.
“The acquisition of Kate Spade is an important step in Coach’s evolution as a customer-focused, multibrand organization,” the Coach chief executive, Victor Luis, said in a statement on Monday.