Coach to make $574 million deal to buy Stuart Weitzman
The New York-based luxury brand intends to acquire the shoe label from Sycamore Partners
Think you've spent too much money on shoes in your life? Don't worry, it's nowhere near as much as Coach. In an effort to boost its position in a highly competitive market, the American company is doing a deal to buy Stuart Weitzman for $574 million.
An advance of $530 million will be made to Sycamore Partners, the shoe brand's owner, with the remaining $44 million to be paid contingently if revenue targets over the next three years are reached, The Wall Street Journal reports.
Following a slump in its handbag business, Coach means to reinforce its other divisions, particularly footwear. Stuart Weitzman's success – with Kate Middleton, Jennifer Lawrence, Taylor Swift and Lupita Nyong'o among its famous clients – will hopefully give Coach the push it needs.
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