On Tuesday morning, Coach Inc (COH
) announced that it has entered into an agreement with Sycamore Partners to acquire women’s luxury footwear company Stuart Weitzman Holdings LLC.
As part of the deal, Coach will pay $530 million, while Sycamore Partners will make a payment of $44 million for the company. Coach expects this deal to be accretive to its EPS.
Victor Luis, CEO of Coach commented: “Stuart Weitzman is a leading American luxury designer footwear brand with a solid growth trajectory and further significant domestic and international development potential. Importantly, the size, scope and vibrancy of the Stuart Weitzman brand, along with the continuity of its management team, allows for a seamless transition to Coach ownership, as we continue to focus on Coach's brand transformation. Over the medium term, we look forward to advancing the Stuart Weitzman brand's global development, especially by leveraging Coach's international infrastructure and expertise in handbags and accessories. In addition, we look forward to benefiting from the Stuart Weitzman team's expertise in footwear development where they're proven leaders in fashion and fit. Our strong balance sheet provides the flexibility to take advantage of this opportunity while re-investing in our core business and continuing to maintain our dividend at current levels.”
COH Dividend SnapshotAs of market close on January 5, 2015
Click here to see the complete history of COH dividends.
Coach shares were up 54 cents, or 1.47%, during pre-market trading Tuesday.
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