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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.]]>

Porsche and Dezer Development Inaugurate Porsche Design Tower in Miami

Porsche and Dezer Development Inaugurate Porsche Design Tower in Miami

Dezervator, which whisks both residents and their vehicles up to their luxurious home in the sky. Representing Porsche Design’s first foray into luxury residential real estate, the landmark tower reflects the brand’s hallmarks of functional design, technical innovation, forward-thinking and iconic style. “It is an especially proud and remarkable moment to debut the first-ever Porsche Design Tower,” says Gil Dezer, president of Dezer Development. “Simply put, there is no other building in the world with the same level of groundbreaking ingenuity and superlative quality as Porsche Design Tower Miami. This iconic tower has not only redefined Miami’s skyline, but residential luxury as we know it.” “To see the first-ever Porsche Design Tower in Miami in its final stage is mind-blowing. The functional design, which encapsulates the DNA of the Porsche Design brand, will accompany the residents in all areas of their daily life and will enable them to live a unique and innovative experience, which is characterized by the blend of function and technology. We are very proud to celebrate the Grand Opening of the Porsche Design Tower Miami together with our partner Gil Dezer,” says Jan Becker, CEO of Porsche Design Group. The Dezervator is expected to re-shape condominium living, with the ability to have your vehicle literally at your front door. The tower’s other over-the-top, luxurious amenities, also include plunge pools and outdoor summer kitchens on the balconies of almost every unit. Other building amenities include a state-of-the-art spa equipped with Vichy showers, a Sunset Terrace complemented with twin over-sized spa tubs, and oceanfront ballroom and multipurpose clubrooms. The clubrooms include a movie theatre with new release capability and game room complete with racing and golf simulators. The building will also have available a ‘Car Concierge’ who will tend to a resident’s vehicle, by assisting with regular maintenance, tire rotations, washing and other services. With an estimated sellout of about $840 million, 126 of the tower’s 132 units have been reportedly sold. Of the six remaining units, one is a 19,403 square foot, four-story penthouse with space for up to 11 vehicles, listed at $32.5 million. Dezer Signature Brands an entity of Dezer Development, has a master licensing agreement with Porsche Design. Dezer Signature Brands specializes in co-developing luxury high rise residential and condo-hotel developments with marquee lifestyle brands. The company partners with prestigious globally-recognized brands to develop unique condominiums at some of best addresses in the world. The company’s owner, Gil Dezer, is one of the largest oceanfront property owners in Sunny Isles Beach. The Dezer family own just over 27 acres of prime oceanfront property including 2,100 feet of beachfront between 158th Street to 191st Street along Collins Avenue, said to be one of the largest holdings of beachfront property owned and developable in the state of Florida. In the 1980s, his Tel Aviv-born father, Michael Dezer, purchased a number of ocean front plots in Miami and, in partnership with Donald Trump, developed numerous properties including the $900 million Trump Towers, the $600 million Trump Grande Ocean Resort and Residences and the $166 million Trump International Hotel and Tower in Sunny Isles Beach. His company Dezer Properties in New York City reportedly owns and manages 1.3 million square feet of commercial space in Chelsea as of 2013, and is also the landlord of the luxury auto retailer Manhattan Motorcars. Porsche Design is a premium-lifestyle brand founded in 1972 by Professor Ferdinand Alexander Porsche. Created and engineered by the legendary Studio F. A. Porsche in Austria and brought to life by carefully-selected manufacturers. Porsche Design products are sold worldwide at its 140 stores and online, as well as at high-end department stores, and specialist retailers.]]>

@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.]]>

Galeries Lafayette Group Acquires @InstantLuxe Pre-Owned Goods Startup

Galeries Lafayette Group Acquires @InstantLuxe Pre-Owned Goods Startup

LuxuryDaily. Interest in consignment of luxury goods among affluent consumers has reportedly been on the rise. The deal is said to be designed to accelerate Galeries Lafayette’s omnichannel strategy. In 2016, Galeries Lafayette Group reached a new milestone of its innovation strategy by launching an accelerator dedicated to startups transforming retail and fashion. Developed in partnership with Plug and Play, a recognized player of the silicon valley with international reach, this accelerator baptized “Lafayette – Plug and Play” aims to develop an integrated platform to assist startups willing to disrupt fashion and retail by creating an innovation ecosystem. “Lafayette – Plug and Play” is based in a dedicated 1,000 sqm office space located in the heart of Paris. It will offer entrepreneurs a specifically curated program, providing unique services and workspace, as well as skills, network and capital investments.]]>

Hong Kong Global Brands Group Acquires TLG Brands From Synova

Hong Kong Global Brands Group Acquires TLG Brands From Synova

Global Brands Group [HK: 787], one of the world’s leading branded fashion accessories, footwear and apparel companies, acquired TLG Brands from British lower mid-market private equity firm Synova Capital. TLG (formerly The Lunan Group) owns handbag brands Fiorelli, Modalu and Nica and is the UK’s leading supplier of fashion accessories. Synova, which acquired TLG in July 2008, realized “a return of 3x invested capital” on the deal, the company says. TLG, founded in 1988 by brothers Stuart & David Lunan, embarked with Synova’s support on a growth strategy by way of a multi-channel business model and new e-commerce platform to drive international sales with a particular focus on Europe and Asia. Over the past three years, the company has successfully launched Fiorelli, NICA and Modalu in a number of international markets. TLG Brands has significantly grown market share in recent years and the brands themselves are sold throughout the UK in more than 500 independent retail outlets and leading department stores. TLG was listed by the Sunday Times as one of the fastest growing UK businesses in terms of international sales. The company’s total revenues grew from £13m pre-investment to over £30m at Synova’s exit with profits growing almost threefold over the same period. “We worked with an exceptional management team to deliver strong growth in TLG’s leading brands both in the UK and internationally,” said Philip Shapiro, managing partner of Synova and director of TLG. “The exit is a result of the ambition and hard work of that team and their excellent working relationship with Synova. With market leading positions in all of their key territories we wish the team every success in the next stage of the Company’s development.” “I have greatly enjoyed working with Synova who demonstrated a detailed understanding of our business,” said Mike Hiscock, CEO of TLG. “Their strategic input and vision has been fundamental in ensuring we achieved our goal of developing a multi-channel, multi territory branded accessories business.” Global Brands Group (GBG) designs, develops, markets and sells branded apparel, footwear, fashion accessories and related lifestyle products across a diverse portfolio of owned and licensed brands. Its customers are retailers, department stores, hypermarkets, off-price retailers, independent chains, specialty retailers and e-commerce channels in the Americas, Europe and Asia. GBG Controlled Brands include Frye, Juicy Couture, Spyder and Aquatalia among others. Its Licensed Brands include Calvin Klein, Cole Haan, Michael Kors, uess, Coach, Nautica, Tommy Hilfiger, Nine West and Under Armour, as well as characters, including Hello Kitty and Disney’s Frozen, Teenage Mutant Ninja Turtles and Peanuts. Global Brands Group was listed on the Main Board of the Hong Kong Stock Exchange by way a spin-off from its parent company Li & Fung, in July 2014. William Fung, GBG’s chairman and non-executive director, is a managing director of Li & Fung Group, one of the largest trading companies in Hong Kong, as well as an alumnus and trustee of Princeton University. Fung is also non-executive director of HSBC Holdings and an independent non-executive director of CLP Holdings Limited, VTech Holdings Limited, Shui On Land Limited and Singapore Airlines. Synova Capital is a private equity firm specializing in investments in UK growth companies. The firm typically invests between £10m and £30m in UK companies operating in attractive niches with significant opportunities for earnings growth and value creation. The firm invests across five sectors: business services, financial services, technology, consumer brands and healthcare and education. Synova was founded in 2007 by its managing partners, David Menton and Philip Shapiro, and is based in London, United Kingdom. In January 2016, the firm closed its third fund Synova Capital Fund III LP at its hard cap of £250m. The firm has raised a total of nearly $540 million in funding to date.]]>