Stuart Weitzman gets new owner
Coach has completed its acquisition of Stuart Weitzman.
In January it was reported that Coach was close to signing a deal to buy the luxury footwear brand from Sycamore Partners, who obtained Stuart Weitzman's parent company The Jones Group in 2013.
Now Coach has confirmed to WWD that the contract has gone through after making initial payments of around $530 million, with the company also set to make up to $44 million in contingent payments to the equity firm once it reaches certain revenue targets. These will be met over the three years following the closure of the deal.
This new acquisition is predicted to be accretive, which means it will add to earnings per share.
While there may be changes, Weitzman himself will continue in his role of creative director at his eponymous label and chief executive officer Wayne Kulkin will remain in his position too.
Coach reported that it's pleased Weitzman's management team are happy to help work towards the growth of the business. The company won against the likes of Companies Advent International Corp. and Brown Shoe Co., who were also apparently keen to acquire Stuart Weitzman.
Both Coach and Stuart Weitzman are at a good point currently, with Coach creative director Stuart Vevers recently sharing his enjoyment at working at the brand.
“I’ve always had a great passion for brands. The soul and uniqueness in great fashion houses is what really excites me, and it’s what drew me to Coach," he told WWD, adding that his focus is keeping the fashion house "fresh".
Meanwhile Weitzman's Nudist style footwear was dubbed the most popular on the red carpet in 2014.