Coach to Acquire Kate Spade, Reports Say
According to sources inside both companies, Coach’s acquisition of Kate Spade may be announced in a matter of weeks, if not days. The price of acquisition is not yet known, although analysts suggest it could be north of $2 billion. In a March 2017 report, Cowen & Company said that there was an 80 percent chance Kate Spade would be acquired, raising its target price to $27 per share.
Total Retail's Take: This long-rumored deal finally appears close to happening. Coach has been in the market for potential acquisition targets, reportedly exploring the purchase of New York-based brands Diane von Furstenberg and Rebecca Minkoff, and Kate Spade would seem to align well with its customers and its desire to become more of a lifestyle brand. Kate Spade has had its successes (international sales were up 7 percent year-over-year in 2016) as well as failures (closure of its Saturday brand, loss of market share in its men's business) in recent years, so a potential merger with Coach could help strengthen both brands.