Sycamore Partners has signed an agreement to sell Stuart Weitzman, a designer and manufacturer of women’s luxury footwear, to Coach, Inc. for approximately $530 million. Coach will also make up to $44 million in contingent payments upon the achievement of selected revenue targets over the next three years. Sycamore Partners acquired Stuart Weitzman in April 2014 as part of the firm’s $2.2 billion acquisition of the Jones Group.
Stuart Weitzman’s footwear and accessory products are sold in more than 70 countries through luxury department and specialty stores, as well as through over 100 branded retail stores and shop-in-shops. Stuart Weitzman had revenues of approximately $300 million for the twelve months ended September 30, 2014. Over the last five years, Stuart Weitzman has experienced strong growth with sales growing at a 10% compounded annual rate driven by distribution, e-commerce and same store sales gains. Stuart Weitzman is headquartered in New York (www.stuartweitzman.com).
The acquisition of Stuart Weitzman will complement Coach’s current position in premium handbags and accessories. “Stuart Weitzman is a leading American luxury designer footwear brand with a solid growth trajectory and further significant domestic and international development potential. Importantly, the size, scope and vibrancy of the Stuart Weitzman brand, along with the continuity of its management team, allows for a seamless transition to Coach ownership, as we continue to focus on Coach’s brand transformation,” said Victor Luis, the Chief Executive Officer of Coach.
Sycamore Partners invests in consumer and retail companies. In addition to Stuart Weitzman, the firm’s investment portfolio currently includes Aéropostale, Coldwater Creek, Hot Topic, Jones New York, the Kasper Group, Kurt Geiger, MGF Sourcing, Nine West Holdings, Pathlight Capital, and Talbots. Sycamore Partners has more than $3.5 billion in capital under management and is based in New York (www.sycamorepartners.com).
Coach (NYSE:COH) is a designer of luxury accessories and lifestyle products and is best known for its leather handbags. Coach’s product offerings include women’s and men’s bags, women’s and men’s small leather goods, business cases, footwear, wearables including outerwear, watches, weekend and travel accessories, scarves, sunwear, fragrance, jewelry, travel bags and other lifestyle products. The company’s products are sold through company owned stores, select department stores and specialty stores, and through Coach’s website at www.coach.com. Coach was founded in 1941 and is headquartered in New York.
Coach will finance the transaction with cash on hand or other sources of financing available to the company in the credit and capital markets.
The financial adviser to Coach was Perella Weinberg Partners. Goldman, Sachs & Co. and Citigroup Global Markets acted as financial advisers to Sycamore Partners.
© 2015 PEPD • Private Equity’s Leading News Magazine • 1-7-15
