US giant Coach has completed the acquisition of Kate Spade and shares in the latter will cease trading on the New York Stock Exchange today (12 July).
Premium fashion, accessories and lifestyle brand Kate Spade was officially put up for sale in February of this year and Coach confirmed its acquisition for a total transaction value of $2.4bn ($18.50 per share) in May.
The buy is Coach’s second major acquisition in as many years after it acquired footwear brand Stuart Weitzman in 2015. It also confirms the group’s strategy to become a major multi-brand house.
In a statement confirming the finalising of the deal, Coach said: “The combination of Coach, Inc and Kate Spade & Company creates 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.
“Coach’s history and heritage, multi-channel, international distribution model, and seasoned leadership team uniquely position it to drive long-term sustainable growth for Kate Spade.”
Kate Spade was founded by the designer of the same name and her husband Andy in 1993. Initially selling just handbags it went on to move into a wide range of categories from jewellery to stationery and became known for its use of bold colour and graphical prints. The business now includes women’s, men’s (via the Jack Spade brand), children’s and homewear and also owns jewellery design business Adelington Design Group, all of which are part of the Coach acquisition.
Spade sold her remaining shares in the business in 2006 and last year launched a new luxury footwear and handbag brand called Frances Valentine.