Select Page
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.]]>

@LVMH Acquires 80% Stake in German Luggage Group @Rimowa for $716M

@LVMH Acquires 80% Stake in German Luggage Group @Rimowa for $716M

maison of the LVMH Group, and Alexandre Arnault will be appointed co-CEO of Rimowa. Rimowa has become one of the quintessential houses for innovative, high-quality luggage over the course of the twentieth century. The business has built its reputation designing lightweight and easy to use luggage and Rimowa suitcases today serve as the industry benchmark for German quality. Rimowa products are now distributed in 65 countries, through nearly 150 stores via licensees and a network of specialized partners, with a turnover expected to exceed 400 million euros at the end of 2016. Rimowa, with 3,000 employees worldwide, provides integrated design and product development in Germany along with the majority of manufacturing, combining artisanal craftsmanship with precision technology. “Over the past two years I have had the opportunity to establish close ties with the Arnault family, and in particular with Alexandre,” said Dieter Morszeck. “Alexandre and I have discussed at length the attractive development prospects available to us and the common values that we share. I am delighted that he is joining Rimowa and I have full confidence in his ability to accelerate the development of the business by my side.” “Rimowa is a superb business which I have followed as a loyal customer for many years. Rimowa has revolutionized the luggage industry for over a century, its suitcases are renowned for their unique performance, quality and design. I am honored to join Rimowa and to be working alongside Dieter,” said Alexandre Arnault. “Rimowa is a brand with a unique heritage. We share with Dieter Morszeck the same passion for innovation and a common desire to offer very high-quality products derived from a European tradition of craftsmanship. What’s more, it brings me great pleasure that Rimowa will be the first German house to join the LVMH Group. Germany is recognized all over the world for the vitality of its family businesses and for the quality of their products,” added LVMH chairman and chief executive Bernard Arnault. Since its creation by Paul Morszeck, innovation has been at the heart of Rimowa’s strategy. In 1937, his son Richard launched the first aluminum suitcase available on the market. The aluminum structure comprising parallel grooves makes the luggage instantly recognizable and has played its part in building the reputation of Rimowa among a sophisticated international clientele. His son Dieter designed the first waterproof metal case in 1976, since which time Rimowa suitcases have become the travelling companion of choice for the greatest filmmakers, photographers and journalists. Rimowa revolutionized the industry when it launched the first polycarbonate suitcase in 2000. A patented system of ball bearings ensures optimum stability. Since 2014, Rimowa has also been developing its “Bossa Nova” range which combines lightweight polycarbonate with the elegance of leather. This suitcase is a tribute to the English artist and botanist Margaret Mee who devoted her life to painting and protecting plants from the Amazon. Rimowa donates a portion of its sales to the Association Saúde e Alegria which supports social projects in the Amazon. More recently, in partnership with Lufthansa, the company launched the Rimowa Electronic Tag. This innovative feature simplifies baggage check-in by matching, with the use of a smartphone, the boarding card with a bluetooth electronic tag integrated only within Rimowa suitcases. For over 60 years, Rimowa suitcases have been inspired by the remarkable story of commercial aviation and the fuselage of the first metallic plane, the Junkers F-13. Thanks to the financial support of Rimowa, a seven year project made it possible to reconstruct this legendary aircraft. The inaugural flight took place on September 15, 2016, nearly a century after its first commercial use in 1919. This revival embodies the exceptional heritage of the house. Photo (L-R): Alexandre Arnault of LVMH, Dieter Morszeck, Chairman of Rimowa, and Bernard Arnault, Chairman & CEO of LVMH.]]>