Coach Inc (COH)
22 May 2017
* Sets quarterly cash dividend of $0.3375per share Source text for Eikon: Further company coverage:
NEW YORK, May 12 Handbag maker Coach Inc’s US$2.4bn purchase of designer and smaller luxury handbag and accessories maker Kate Spade & Co, backed by up to US$2.1bn in bank loans, shows that US retailers are opening their purses to buy rivals to boost profits, bankers and analysts said.
Handbag maker Coach Inc said it would buy Kate Spade & Co for $2.4 billion as it looks to tap the popularity of its smaller rival's quirky satchels and totes among millennials. | Video
Handbag maker Coach Inc said it would buy Kate Spade & Co for $2.4 billion as it looks to tap the popularity of its smaller rival's quirky satchels and totes among millennials.
* Coach to cut back Kate's online flash sales (Adds CEO and analyst comments, Breakingviews link; updates shares)
* CEO on conf call- marketing and design, merchandising teams to remain independent for Kate and Coach, corporate functions to be shared
* Kate spade & co - with respect to coach deal, under some circumstances, co is required to pay coach a termination fee of $83.3 million - sec filing Source text for Eikon: (http://bit.ly/2qgMQnY) Further company coverage:
* Coach Inc to acquire Kate Spade & Company for $18.50 per share in cash
May 8 Handbag maker Coach Inc said it would buy smaller rival Kate Spade & Co for $2.4 billion.
Coach Inc reported a higher-than-expected quarterly profit, as the handbag maker cut back on discounting in the United States and sold more expensive bags, sending its shares up 11.4 percent.
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