Sycamore Set to Sell Stuart Weitzman to Coach for $574M
January 07, 2015
Sycamore Partners has agreed to sell Stuart Weitzman, a designer and manufacturer of women’s luxury footwear, to Coach (NYSE: COH). Under terms of the agreement, Coach will make initial cash payments of about $530 million and pay up to $44 million in contingent payments upon the achievement of selected revenue targets over the three years following the acquisition close. Acquired by Sycamore in April 2014, Stuart Weitzman operates 47 retail locations and has footwear and accessories sold in over 70 countries; it generated revenues of about $300 million in the 12 months ended September 30, 2014. Coach will finance the deal with cash on hand and other sources available via the credit and capital markets. The transaction is expected to close by May 2015.