
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.

Joe Keenan is the executive editor of Total Retail. Joe has more than 10 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.