Liz Claiborne to buy NY City-based fashion accessories retailer
08 Nov '06
1 min read
Liz Claiborne Inc announced that it has agreed to purchase all of the equity interest in Kate Spade LLC for a purchase price of approximately $124 million, including the retirement of debt at closing.
Based in New York (NY) City, Kate Spade is a designer, marketer, wholesaler and retailer of fashion accessories for women and men through its kate spade and JACK SPADE brands.
Kate Spade generated net sales of approximately $84 million for the fiscal year ended July 30, 2006.
Consummation of the transaction is subject to review under the provisions of the Hart-Scott-Rodino Act and other customary closing conditions.
The transaction is expected to close in the fourth quarter of 2006 and be slightly dilutive to fiscal 2007 earnings per share.
Kate Spade's products are positioned as accessible luxury, targeting women of all ages who appreciate the combination of fashion and practicality.
Kate Spade sells its products through a multi-channel, multi-geography distribution strategy, including company-owned retail and outlet stores, domestic and international wholesale accounts and e-commerce.
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