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Coach to Acquire Kate Spade for $2.4B

Coach to Acquire Kate Spade for $2.4B

Kate Spade engaged bankers to explore strategic alternatives, as reported by ExitHub earlier this year. Kate Spade shareholders will receive $18.50 per share in cash, representing a 27.5% percent premium to the unaffected closing price of Kate Spade’s shares as of December 27, 2016, the last trading day prior to media speculation of a transaction. The deal has been unanimously approved by the Boards of Directors of both companies and is expected to close in the third quarter of 2017, subject to customary closing conditions. Kate Spade operates principally under two global, multichannel lifestyle brands: kate spade new york and Jack Spade New York. The company’s four category pillars – women’s, men’s, children’s and home – span demographics, genders and geographies. Known for crisp color, graphic prints and playful sophistication, kate spade new york aims to inspire a more interesting life. The kate spade new york collection includes the Madison Avenue, Broome Street and on purpose labels. Jack Spade New York offers a timeless and versatile assortment of bags, sportswear and tailored clothing founded on the aesthetic of simple, purposeful design. The company also owns Adelington Design Group, a private brand jewelry design and development group. “Kate Spade has a truly unique and differentiated brand positioning with a broad lifestyle assortment and strong awareness among consumers, especially millennials,” said Victor Luis, Chief Executive Officer of Coach. “Through this acquisition, we will create the first New York-based house of modern luxury lifestyle brands, defined by authentic, distinctive products and fashion innovation. In addition, we believe Coach’s extensive experience in opening and operating specialty retail stores globally, and brand building in international markets, can unlock Kate Spade’s largely untapped global growth potential. We are confident that this combination will strengthen our overall platform and provide an additional vehicle for driving long-term, sustainable growth.” The Coach brand was established in New York City in 1941, and has a rich heritage of pairing exceptional leathers and materials with innovative design. Coach is sold worldwide through Coach stores, select department stores and specialty stores, and through Coach’s website. In 2015, Coach acquired Stuart Weitzman, a global leader in designer footwear, sold in more than 70 countries. “Following a thorough review of strategic alternatives, reaching an agreement to join Coach’s portfolio of global brands will maximize value for our shareholders and positions Kate Spade for long-term success as we continue our evolution into a powerful, global, multi-channel lifestyle brand,” said Craig A. Leavitt, Chief Executive Officer of Kate Spade. The deal is not subject to a financing condition. Coach has secured committed bridge financing from BofA Merrill Lynch. The $2.4 billion purchase price is expected to be funded by a combination of senior notes, bank term loans and approximately $1.2 billion of excess Coach cash, a portion of which will be used to repay an expected $800 million 6-month term loan. Coach’s financial advisor is Evercore Group LLC and its legal advisor is Fried, Frank, Harris, Shriver & Jacobson LLP. Kate Spade’s financial advisor is Perella Weinberg Partners LP and its legal advisor is Paul, Weiss, Rifkind, Wharton & Garrison LLP.]]>

Samsonite to Acquire Online Retailer eBags for $105M

Samsonite to Acquire Online Retailer eBags for $105M

Samsonite acquired Tumi (NYSE: TUMI) in a deal valued at $1.8 billion. “As the No. 1 online luggage and bag specialist in the U.S., eBags is an excellent complement to Samsonite’s existing business,” said Ramesh Tainwala, Chief Executive Officer of Samsonite. “The acquisition provides us with a strong platform to significantly expand our direct-to-consumer online presence, not just in North America but around the world. With eBags’ immediate resources and digital expertise, we are able to expand our online retail capabilities in a meaningful way, driving stronger sales growth across all the brands in Samsonite’s portfolio. E-commerce is fast becoming a vital part of our business, and will continue to be central in our strategy moving forward.” “This is an exciting day for eBags and we are thrilled to be joining the Samsonite family,” said Mike Edwards, President and Chief Executive Officer of eBags. “Their considerable experience and well-established presence in the travel luggage industry, together with our digital capabilities and passion for travel, are a perfect match. We look forward to forging a strong partnership, and to ensuring that our customers are given the best service and a diverse and compelling product offering.” Samsonite is the world’s best known and largest lifestyle bag and travel luggage company, with a heritage dating back more than 100 years. The group is engaged in the design, manufacture, sourcing and distribution of luggage, business and computer bags, outdoor and casual bags, travel accessories and slim protective cases for personal electronic devices throughout the world, primarily under the Samsonite, Tumi, American Tourister, Hartmann, High Sierra, Gregory, Speck, Lipault and Kamiliant brand names and other owned and licensed brand names. Samsonite was founded in 1910 and is headquartered in Luxembourg. The deal is expected to close in the second quarter of 2017, subject to customary closing conditions.]]>

Alibaba $BABA to Invest and Partner with Steven Spielberg's Amblin Partners

Alibaba $BABA to Invest and Partner with Steven Spielberg's Amblin Partners

Dalian Wanda acquired a majority stake in Legendary Entertainment for $3.5 billion. Wanda has also partnered with Sony Pictures to market and co-finance some upcoming movie releases of Sony Corp’s film unit in China. In March, Wanda‘s AMC Entertainment (NYSE: AMC), acquired rival chain Carmike Cinemas for $1.1 billion, and in July it acquired London-based Odeon & UCI Cinemas Group, the largest theater exhibitor in Europe, from private equity firm Terra Firma, in a deal valued at £921 million. Photo: Steven Spielberg and Jack Ma. (Courtesy of Alibaba Pictures)]]>

@HongKongLika Shing Wins HK Property Bid for $252M in Contrarian Move

@HongKongLika Shing Wins HK Property Bid for $252M in Contrarian Move

Wheelock Properties, which made headlines in February when it sold a Mount Nicholson luxury residential property on The Peak, Hong Kong’s iconic natural landmark and exclusive residential retreat, for HK$830 million (US$107 million). This marks Li Ka-shing’s first government land site purchase in four years, after paying 33 percent more than the high-end of market expectations, according to the South China Morning Post. The move comes after CK Property said last month it was spreading its reach globally to find opportunities in other business areas, given the challenges it faces in identifying investments with reasonable returns in Hong Kong’s current property market. Local market analysts were divided over whether the move indicated Li Ka-shing has regained his confidence in Hong Kong. “CK Property has been offering new projects for sale and it’s time to replenish its land bank,” said Thomas Lam, senior director and head of valuation & consultancy at Knight Frank Hong Kong. CK Property’s aggressive bid, to a certain extent reflects its “confidence in Hong Kong,” Lam told SCMP. However, according to Nicole Wong, regional head of property research at CLSA, a leading global Asian investment firm based in Hong Kong, this deal is meant to show CK Property is flush with cash, rather than an indication of confidence in Hong Kong. “This land acquisition just involved HK$1.9 billion. It is an insignificant amount when compared with his sale of The Center,” Wong said, referring to the iconic 73-story office building in Central Hong Kong put up for sale last month at a price of HK$35 billion (US$4.5 billion), by Hong Kong’s wealthiest person, and the second wealthiest in Asia. Joseph Tsang, managing director of international property consultant JLL Hong Kong, concurred with her assessment, also seeing no change in Li Ka-shing’s outlook for the city.]]>

IDG-Everbright Acquire Shanghai Film Academy to Create Top Film & TV Platform

IDG-Everbright Acquire Shanghai Film Academy to Create Top Film & TV Platform

Legendary was acquired by Wanda Group. In 2011, IDG also initiated and sponsored “Looking China,” a program that teams foreign film students with students from Beijing Normal University’s Institute for International Communication of Chinese Culture to produce short documentaries about China. More than 300 film students from 35 countries participated in the program, and films produced there have won more than 40 international awards. IDG Capital has also invested in a number of feature-length films, including Turning Point 1977, Under the Hawthorn Tree, and My Old Classmate.]]>