US luxury group Coach has confirmed it has made a tender offer to acquire Kate Spade for $18.50 per share following confirmation earlier this month that it planned to buy the business for a total transaction value of $2.4bn.
Coach subsidiary Chelsea Merger Sub Inc launched the tender offer today, which is subject to the customary conditions, and it will expire on 23 June unless it is extended.
Kate Spade, the premium lifestyle and accessories brand, was put on the market in February of this year following speculation at the end of 2015 that it would be sold. Coach, which acquired footwear brand Stuart Weitzman in January 2015, quickly emerged as the favourite to buy the business.
Coach has been restructuring itself as a brand group and is believed to remain in acquisition mode. It has also been linked with a potential purchase of British luxury and footwear brand Jimmy Choo, which was recently put up for sales by its owner JAB Luxury.
At the time it announced its planned acquisition of Kate Spade earlier this month, Coach Group CEO Victor Luis said:” Kate Spade has a truly unique and differentiated brand positioning with a broad lifestyle assortment and strong awareness among consumers, especially millennials. Through this acquisition, we will create the first New York-based house of modern luxury lifestyle brands, defined by authentic, distinctive products and fashion innovation.”