Kate Spade LLC said Wednesday that it bought out its Japanese joint venture partner.
The Fifth & Pacific Cos. Inc.-owned Kate Spade acquired the 51 percent interest held by KSJ Co. Ltd., a subsidiary of Sanei International Co. Ltd. The purchase price for the Kate Spade Japan buyout, including debt repayment, related transaction fees and use of Kate Spade Japan’s cash on hand, totaled $47.6 million.
Kate Spade is also required, during the fourth quarter, to make a post-closing asset adjustment payment to Sanei in conjunction with the buyout. Kate Spade said it does not expect the post-closing payment to be material. It also doesn’t anticipate the buyout to have an impact on adjusted earnings before interest, taxes, depreciation and amortization for 2012.
The Japan buyout is part of Kate Spade’s international expansion push, which includes recent store openings in the U.K., Dubai, Kuwait and Brazil. The company intends to extend its retail expertise in Japan to its business in the rest of Asia.
According to the New York-based company, Kate Spade Japan was formed between Sanei and Kate Spade in August 2009. In Japan, it operated the Kate Spade and Jack Spade businesses. The company will continue to operate those businesses in Japan through its subsidiary.
For Kate Spade Japan’s fiscal year ended Aug. 31, net sales were about $88 million, an increase from the prior fiscal year of 20 percent on a local currency basis. Excluding charges, the Japanese company recorded adjusted operating margins in the high-single digits and EBITDA in the lowdouble digits, according to the company. Kate Spade Japan, which distributes its products mainly through 53 points of sale, said more than 90 percent of net sales in the Japan business last year came from the direct-to-consumer business.
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion
“I’m Russian and I love to use all these little tricks that I got from my grandma or my mom. We didn’t have a lot of money for creams or anything like that so we would use a garden as a beauty treatment regime. We’d put cucumber in the fridge and do a cucumber mask,” says model @irinashayk on one of her beauty hacks. WWD asked celebs what their go-to self-care rituals are. See what Naomie Harris, Freida Pinto and more said on WWD.com. #wwdeye #wwdbeauty (📷: @zefashioninsider)
Exclusive: @viktorandrolf are teaming up with @Zalando on a collection made from leftover clothing. The lineup, which lands at the retailer February 1, includes 17 pieces adorned with sliced up and repurposed overstock from the retailer’s private label collection. Pictured here is a look from the collection –– see more on WWD.com. #wwdfashion #wwdnews
@duewestnyc is the newest bar joining the collection of intimate neighborhood-focused spaces in the West Village. The cocktail menu, which includes bitters and syrups made in-house, offers a “Build Your Own Old-Fashioned” – like the one pictured here – where guests can choose from a list of spirits and unexpected sugars and bitters. #wwdeye
Spotted at last night’s National Board of Review gala in NYC: Angelina Jolie. Jolie – along with Meryl Streep, @lupitanyongo and more – continued the all-black dress code from Sunday’s Golden Globes. #wwdeye (📷: @lexieblacklock)