Coach Plans To Buy High-End Shoe Brand And Speed Up Pformation

It is reported that the paction value of up to 574 million U.S. dollars.

Under the terms of the agreement, Coach will pay Sycamore Partners the first amount of about $530 million in cash.

In addition, if Stuart Weitzman successfully achieves the designated sales target within three years after the completion of the acquisition, Coach will pay the most probable cost of Sycamore Partners to US $44 million.

In 2010, Stuart Weitzman Holdings Limited sold most of the company's shares to the American apparel manufacturer Jones Group Limited.

However, Jones group, which has nearly 40 brands, has not been performing well in recent years.

Sycamore Partners, a private Holdings Company, bought Jones group in December 2013 for $2 billion 200 million (including $1 billion in debt).

Coach stakeholders told reporters, "the paction will strengthen Coach's leading position in high-end handbags and accessories industry. At the same time, for the Coach that announced the brand pformation plan earlier this year and made good progress, the paction will enhance the company's profitability in real time."

"Stuart Weitzman has the track record of steady growth, and the huge potential for further development in domestic and foreign markets", Coach CEO Victor Luis said. It is important that "Stuart Weitzman brand scale, business scope, growth momentum, and continuity of management team help to integrate the brand smoothly into the Coach family, and let Coach continue to focus on its brand pformation plan."

For post purchase planning,

"Coach expects to promote the global development of Stuart Weitzman brand through the use of international infrastructure and expertise in handbags and accessories industry," he said.

In addition, Stuart Weitzman is the leader of footwear industry in fashion design and comfort. Coach will benefit from the expertise of its team in shoe development. "

The products of Stuart Weitzman are currently sold through boutique stores and department stores all over the world, as well as outlets located in the United States and Europe. There are about 45 stores in the US market. There are 61 stores and 10 stores in the international market. As of 12 months in September 30, 2014, the net sales of Stuart Weitzman are about 300 million dollars.

Expanded by distribution network.

Stuart Weitzman has been growing strongly in the past five years, and its annual sales compound growth rate is 10%.

After the acquisition, Coach said that Stuart Weitzman will continue to be the creative director and executive chairman of Stuart Weitzman Holdings LLC, in parallel with the CEO, Wayne Kulkin and management team to continue to develop.

。

For the takeover, Coach said it would make payments through hand cash or other sources of financing from credit and capital markets.

Excluding the paction related expected takeover accounting adjustments and contingent costs, it is expected that the acquisition will increase the company's earnings per share.

It is expected that the acquisition will be completed by or before May 2015 after the usual delivery conditions have been reached.

Coach sales for the first quarter of fiscal 2015 ended September 27, 2014 at $1 billion 40 million, down 10% from 11.5 billion US dollars in the same period last year, but sales in China increased by 10%.