Kate Spade New York Resort 2018

Coach Inc. has completed its acquisition of Kate Spade & Co.

With the acquisition complete, Coach’s former competitor has become a wholly owned subsidiary. Kate Spade’s shares will be delisted from the New York Stock Exchange on Wednesday.

Coach in early May said it reached a definitive agreement to acquire its handbag rival in a deal valued at $2.4 billion. Kate Spade’s executive team is set to continue on at Coach. The deal also represented Coach’s decision to expand the company’s market reach to include the Millennial consumer. Understanding the Millennial consumer base is where the Kate Spade brand excels at, and the brand is known for its whimsical, fun and fashionable positioning.

The Kate Spade deal helps Coach expand its portfolio of New York-based modern luxury lifestyle brands. In addition to its core Coach offerings, the company in 2015 paid $574 million to acquire footwear brand Stuart Weitzman. All three brands — Coach, Stuart Weitzman and Kate Spade — have roots in New York.

For Kate Spade, Coach brings to the table an extensive supply chain network, as well as experience on the international front that can help the brand grow its global presence and specialty doors overseas. Kate Spade in turn can provide Coach with some knowledge on how and where to grow Coach’s product line, particularly in the area of licensing. At the time Coach acquired Stuart Weitzman, the Coach footwear line was produced under license with Jimlar. A year later, through learnings from the Stuart Weitzman acquisition, Coach took back its footwear line to produce in-house.

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