Coach acquires Kate Spade for US$2.4 billion

Coach acquires Kate Spade for US$2.4 billion

Luxury Handbag and accessories brand Coach announced on Monday its deal to acquire Kate Spade for a sum of $2.4 million, in a bid to accelerate its growth. By combining, they expect to save about $50 million a year in inventory management and other operational efficiencies, the companies said. The deal is aimed at strengthening the brand’s position among Millenials, which was also the reason behind its marketing partnership with Selena Gomez earlier this year. Under the terms of the deal announced on Monday, Kate Spade shareholders will receive $18.50 per share in cash, a 27.5 percent premium on the price prior to media speculation about a takeover of the company.