Major accessories intel: Coach is snapping up Stuart Weitzman from private equity firm Sycamore Partners. The shoe label is fetching up to $574 million in the deal. This is the inaugural acquisition for Coach; the company bested Brown Shoe Co. and Advent International Corp. to snag Stuart Weitzman.
“What an exciting beginning to the new year…Coach has selected us as their first acquisition. In Coach, we have found a strategic partner that respects our culture, and offers the scale, resources, and global business acumen to enable us to realize our full potential,” said Stuart Weitzman, creative director and executive chairman of his eponymous brand, in a statement. Weitzman and his brand’s management team are slated to continue in their current capacities. The deal is comprised of initial cash payments of approximately $530 million, followed by up to $44 million in contingent payments as revenue targets are hit over the next three years.
“Stuart Weitzman is a leading American luxury designer footwear brand with a solid growth trajectory and further significant domestic and international development potential,” said Coach CEO Victor Luis in a statement. “We look forward to advancing the Stuart Weitzman brand’s global development, especially by leveraging Coach’s international infrastructure and expertise in handbags and accessories.”
Stuart Weitzman brought in annual net revenues of $300 million, spanning from September 2013 to September 2014. The label has rolled out a chic series of ad campaigns in recent years, shot by Mario Testino and starring Kate Moss, Gisele Bündchen, and Natalia Vodianova.