* Says Leonard Green to pay $140 mln in cash at close
* Says remaining amount to be paid in the form of a 3-year
* Deal leaves Fifth & Pacific with kate spade brand
Dec 10 Fifth & Pacific Cos Inc said it
would sell its Lucky Brand Jeans business to private equity firm
Leonard Green & Partners LP for $225 million as it focuses on
its fast-growing, higher-end kate spade brand.
The kate spade brand, which competes with offerings from
Michael Kors Holdings Ltd and Coach Inc, has
posted strong growth in sales in recent quarters as its trendy
handbags, jewelry and shoes resonate with customers.
"We believe that by focusing all of our resources on the
huge opportunity at Kate Spade, we can deliver the strongest
value creation opportunity for our shareholders," Chief
Executive William McComb said on Tuesday.
"This is all about bringing Kate Spade to its full
Fifth & Pacific, formerly known as Liz Claiborne Inc, said
Leonard Green will pay $140 million in cash at the time of
closing and the remaining in the form a three-year seller note.
Lucky Brand sales rose 7.3 percent to $120 million in Fifth
& Pacific's most recent quarter.
The apparel and accessories maker sold its once-popular
Juicy Couture business to Authentic Brands, a unit of Leonard
Green, for $195 million in October.
Fifth & Pacific said it expects the Lucky Brand deal to
close in the first quarter of 2014.
Centerview Partners and Perella Weinberg Partners advised
Fifth & Pacific. Paul, Weiss, Rifkind, Wharton & Garrison LLP
was its legal adviser.
Latham & Watkins LLP was Leonard Green's legal adviser.
Fifth & Pacific's shares have more than doubled this year to
close at $33.12 on Monday on the New York Stock Exchange.