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The
$18.50 per share cash offer represents a premium of 9 percent to
Kate Spade's Friday close. Kate Spade's stock was trading above
the offer price at $18.95 premarket on Monday.
The stock has risen 17 percent since Dec. 27, a day before the
Wall Street Journal reported the company was looking to sell
itself.
The deal is expected to close in the third quarter of 2017 and
add to adjusted earnings in fiscal 2018, Coach said.
Reuters reported in April, citing sources, that Kate Spade would
need a few more weeks negotiating a sale of the company after
receiving an offer from Coach.
Coach expects to have a run rate of about $50 million in savings
within three years of the closing of the deal.
Coach's financial adviser was Evercore Group L.L.C. and its
legal adviser was Fried, Frank, Harris, Shriver & Jacobson LLP.
Kate Spade & Co's financial adviser was Perella Weinberg
Partners LP and its legal adviser was Paul, Weiss, Rifkind,
Wharton & Garrison LLP.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by
Saumyadeb Chakrabarty)
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