Published
Jun 24, 2017
Download
Download the article
Print
Text size

Coach extends tender offer to acquire Kate Spade

Published
Jun 24, 2017

Coach on Friday announced that it has extended its tender offer to acquire Kate Spade & Company. Chelsea Merger Sub Inc., a wholly owned direct subsidiary of Coach, extended the offer to 5:00pm EST on July 10, 2017.
 

Coach brand ambassador Selena Gomez in the Coach fall 2017 campaignCoach Coach - Coach


The New York City-based design house and Kate Spade agreed to an acquisition for $2.4 billion, or $18.50 per share, in May. The purchase price is to be funded by senior notes, bank term loans and $1.2 billion. The offer was initially launched on May 27, 2017 and was previously scheduled to expire at 11:59pm EST on June 23, 2017.
 
Kate Spade was eyeing a sale in late 2016 due to pressure by Caerus Investors. The US hedge fund sent a letter to the Kate Spade Board of Directors explaining its frustration for the New York City-based accessories brand’s inability to achieve profit margins.

Coach ultimately won a bidding war with Michael Kors to acquire Kate Spade.

Copyright © 2024 FashionNetwork.com All rights reserved.