NEW YORK: Coach, luxury fashion accessory company, is expanding its footwear collection, buying Stuart Weitzman Holdings LLC from private equity firm Sycamore Partners for about $530 million.
Coach Incorporation will also make up to $44 million in contingent payments to Sycamore Partners if certain revenue targets are hit over the three years after the deal closes.
Further Coach is in the midst of transforming its brand, working to reduce the level of its promotions and changing product offerings. The company previously announced that it plans to close about 70 underperforming stores in fiscal 2015 as it tries to make its business more competitive with fast growing rivals.
Stuart Weitzman had approximately $300 million in revenue for the 12 months ended September 30, 2014. The brand is currently available in 70 countries. Its products are sold in fine specialty and department stores globally and in its own retail stores in the US and Europe.
