Market Overview

Coach Acquires Luxury Designer Footwear Brand Stuart Weitzman For More Than $500 Million


Coach Inc (NYSE: COH) on Tuesday announced that it has acquired Stuart Weitzman Holdings LLC, a leading designer and manufacturer of women's luxury footwear, from private equity firm Sycamore Partners.

According to a Coach press release, the acquisition is intended to complement the company's leadership position in premium handbags and accessories and is expected to immediately be accretive to earnings per share.

Shares of Coach opened about 0.75 percent higher at $37.00.

"Stuart Weitzman is a leading American luxury designer footwear brand with a solid growth trajectory and further significant domestic and international development potential," Victor Luis, Chief Executive Officer of Coach said. "Importantly, the size, scope and vibrancy of the Stuart Weitzman brand, along with the continuity of its management team, allows for a seamless transition to Coach ownership, as we continue to focus on Coach's brand transformation."

Coach will make an initial payment of $530 million to Sycamore Partners in addition to $44 million in contingent payments upon the successful achievement of selected revenue targets over the coming three years.

For the 12 months ending September 30, 2014, Stuart Weitzman products saw revenues of approximately $300 million across 70 countries due to its global recognition of endorsement of key celebrities including Kate Moss, Gisele Bundchen and Natalia Vodianova.


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Posted-In: Accesories Apparel Coach fashion handbags Stuart WeitzmanM&A News

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