Coach Formal Full Offer Kate Spade

According to the world clothing shoes and hats net, in May 26th, the United States was extravagant.

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The group announces the launch of the light luxury brand to the United States.

In the tender offer, Chelsea Merger Sub Inc., a wholly owned subsidiary of Coach group, has started to offer all the issued shares of Kate Spade in cash. The offer price is $18.5 per share.

The tender offer will expire in June 23rd. Before that, Coach must acquire more than 50% of Kate Spade's issued shares.

At present, Kate Spade has more than 12 million 600 thousand shares out of stock.

After months of negotiations, Coach announced at the beginning of this month that it will buy Kate Spade for 2 billion 400 million dollars in cash.

The deal was approved by the board of directors of both sides, and Coach's offer of $18.50 a share was lower than the previous analyst's forecast of $23-35 per share.

When announcing the takeover, Coach said that Kate Spade will retain the independence of the brand. The current CEO Craig Leavitt and his team will remain in the company to ensure a smooth pition of ownership.

This acquisition not only proved to the industry the adherence of Coach to light luxury positioning, but also released clear signals to investors: the American light luxury industry has the characteristics of "tolerance".

In the subsequent interview, Coach's CEO Victor Luis further elaborated Coach's understanding of lifestyle brands and its views on "new luxury brands".

Victor Luis defines Coach as such a new luxury brand: quality and first-class design, and the brand's history and story can resonate with consumers. The biggest difference between Coach and other European luxury goods groups is "new" and "inclusive".

As for Kate Spade, although it is a light luxury brand, Victor Luis said that Kate Spade has unique positioning and brand attitude. Its distinctive features, fashionable and interesting design have strong influence in the millennial consumer group. He believes that millennial consumers will become the main force driving the organic growth of global luxury brands.

After the paction is concluded, the Coach Coach brand, Stuart Weitzman and Kate Spade will form a strong synergy effect. Coach expects that the synergistic effect of 5000 million will be achieved within three years after the completion of the paction.

Meanwhile, the wholesale channels of Kate Spade (discount stores) and online channels are expected to boost the growth of Coach 2018 fiscal year, and are expected to achieve double-digit growth in the 2019 fiscal year.

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