- Luxury handbag maker Coach has agreed to purchase women's shoemaker Stuart Weitzman for up to $574 million.
- Coach will buy the brand from Sycamore Partners, paying $530 million up front in cash and up to $44 million in future payments if revenue targets are achieved over the next three years. The deal is expected to close by May.
- With the majority of its sales coming from women's handbags, Coach hopes that the move will help it diversify its inventory.
Facing a competitive luxury market, Coach has been undergoing a turnaround for some time now; the acquisition of the trendy Stuart Weitzman brand may help it resonate with the upper-class style setters said to be fans of the shoemaker's boots and heels.
"Stuart Weitzman is a leading American luxury designer footwear brand with a solid growth trajectory and further significant domestic and international development potential," said Coach CEO Victor Luis in a statement.