NEW YORK--(BUSINESS WIRE)--Jul. 11, 2017--
Coach, Inc. (NYSE:COH) (SEHK:6388), a leading New York-based house of
modern luxury accessories and lifestyle brands, today announced that it
has completed the acquisition of Kate Spade & Company (NYSE:KATE) for
$18.50 per share in cash for a total transaction value of $2.4 billion.
The tender offer by a subsidiary of Coach, Inc. for all the outstanding
shares of Kate Spade & Company expired, as scheduled, at 5 p.m. EDT on
July 10, 2017. Following its acceptance of the shares tendered, Coach,
Inc. caused the merger of its subsidiary with and into Kate Spade &
Company. As a result, Kate Spade & Company has become a wholly owned
subsidiary of Coach, Inc. In connection with the merger, all eligible
Kate Spade & Company shares not tendered have been canceled and
converted into the right to receive $18.50 per share in cash, the same
price per share offered in the tender offer. In addition, all Kate Spade
& Company shares will cease to be traded on the New York Stock Exchange
as of July 12, 2017.
The combination of Coach, Inc. and Kate Spade & Company creates a
leading luxury lifestyle company with a more diverse multi-brand
portfolio supported by significant expertise in handbag design,
merchandising, supply chain and retail operations as well as solid
financial acumen. Coach’s history and heritage, multi-channel,
international distribution model, and seasoned leadership team
uniquely position it to drive long-term sustainable growth for Kate
As previously announced, the $2.4 billion purchase price has been funded
by a combination of senior notes, bank term loans and excess Coach cash.
Next Scheduled Announcement
Based on the timing of this transaction, the Company now expects to
report fourth quarter financial results on Tuesday, August 15, 2017. To
receive notification of future announcements, please register at www.coach.com/investors
("Subscribe to E-Mail Alerts").
About Coach, Inc.
Coach, Inc. is a leading New York-based house of modern luxury
accessories and lifestyle brands. The Coach brand was established in New
York City in 1941, and has a rich heritage of pairing exceptional
leathers and materials with innovative design. Coach is sold worldwide
through Coach stores, select department stores and specialty stores, and
through Coach’s website at www.coach.com.
In 2015, Coach acquired Stuart Weitzman, a global leader in designer
footwear, sold in more than 70 countries and through its website at www.stuartweitzman.com.
Coach, Inc.’s common stock is traded on the New York Stock Exchange
under the symbol COH and Coach’s Hong Kong Depositary Receipts are
traded on The Stock Exchange of Hong Kong Limited under the symbol 6388.
About Kate Spade & Company
Kate Spade & Company operates principally under two global, multichannel
lifestyle brands: kate spade new york and Jack Spade New York™. The four
category pillars – women’s, men’s, children’s and home – span
demographics, genders and geographies. Known for crisp color, graphic
prints and playful sophistication, kate spade new york aims to inspire a
more interesting life. The kate spade new york collection includes the
Madison Avenue, Broome Street and on purpose labels. Jack Spade New York
offers a timeless and versatile assortment of bags, sportswear and
tailored clothing founded on the aesthetic of simple, purposeful design.
Adelington Design Group, a private brand jewelry design and development
group, is also under ownership. Visit www.katespadeandcompany.com for
Neither the Hong Kong Depositary Receipts nor the Hong
Kong Depositary Shares evidenced thereby have been or will be registered
under the U.S. Securities Act of 1933, as amended (the "Securities
Act"), and may not be offered or sold in the United States or to, or for
the account of, a U.S. Person (within the meaning of Regulation S under
the Securities Act), absent registration or an applicable exemption from
the registration requirements. Hedging transactions involving these
securities may not be conducted unless in compliance with the Securities
Cautionary Statement Regarding Forward-Looking Statements
This report may contain “forward-looking statements” within the
meaning of the federal securities laws, including Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. In this context, forward-looking
statements often address expected future business and financial
performance and financial condition, and often contain words such as
“expect,” “anticipate,” “intend,” “plan,” “position,” “believe,” “seek,”
“see,” “will,” “would,” “target,” similar expressions, and variations or
negatives of these words. Forward-looking statements by their nature
address matters that are, to different degrees, uncertain. Such
statements involve risks, uncertainties and assumptions. If such risks
or uncertainties materialize or such assumptions prove incorrect, the
results of Coach, Inc. and its consolidated subsidiaries could differ
materially from those expressed or implied by such forward-looking
statements and assumptions. All statements other than statements of
historical fact are statements that could be deemed forward-looking
statements, including any statements regarding the expected benefits and
costs of the acquisition of Kate Spade & Company discussed herein.
Risks, uncertainties and assumptions include the possibility that
expected benefits may not materialize as expected; that Kate Spade &
Company’s business may not perform as expected due to transaction
related uncertainty or other factors; that the parties may be unable to
successfully implement integration strategies; and other risks that are
described in Coach, Inc.’s latest Annual Report on Form 10-K and its
other filings with the SEC. Coach, Inc. assumes no obligation and does
not intend to update these forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170711006409/en/
Source: Coach, Inc.
Analysts & Media:
Andrea Shaw Resnick, 212-629-2618
Head of Investor Relations and Corporate Communications
Senior Director, Investor Relations