Coach Buys Kate Spade for $2.4B, Adds 269 Stores

Coach is acquiring rival Kate Spade for $2.4 billion in an effort to build a multi-brand conglomerate. The move brings a brand known for “bright, girlie” products together under the American fashion house known for high-end accessories, which also happens to have a massive store network.

Kate Spade has 133 specialty stores, 82 outlet locations and 54 foreign market franchises. Coach operates 1,037 stores globally.

Coach believes its experience in the specialty retail sector and international branding will aid in expanding the Kate Spade brand into new global markets. Coach offered a premium of 9% on Kate Spade’s Friday stock closing price. The deal is expected to close in the third quarter.

Coach, a pioneer in selling luxury handbags at relatively affordable prices, has struggled to maintain that success. The company initiated an ambitious turnaround plan in 2013 that included a new leadership and design team, as well as closing or renovating stores and instituting a new pricing strategy.

Coach believes its recently reported better-than-expected earnings signals the strategy is working.

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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Coach Buys Kate Spade for $2.4B, Adds 269 Stores

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Coach Buys Kate Spade for $2.4B, Adds 269 Stores

Inside The Story

About Dennis Kaiser