Fifth & Pacific Cos. Inc., the owner of brands like Juicy Couture, Jack Spade and Kate Spade New York, has set its sights on Kate Spade Japan. They will buy a 51% stake in from a joint venture partner, as a part of their international expansion scheme in the apparels market.
The company will seal the deal by this fall and fork out $45 million to $50 million to Japanese company Sanei International for its stake. This payment includes debt repayment and other related transaction costs. The sweet deal is in lines with Kate Spade’s own vision of owning the majority of its Asia-based businesses.
If we look at their last year’s expansion plans, then in May Kate Spade revealed their joint venture in China with E.land group. The plan was to grow to nearly 300 points of distribution by 2020. It even announced plans to reclaim the Hong Kong South East Asia business from its long-term distribution partner by January 2014.
These rapid transactions come just a month after the parent company, founded by Liz Claiborne in 1976, renamed itself to Fifth & Pacific. Liz Claiborne has previously sold off her Monet and Kensie fashion brands to department store operator J.C. Penney Co. (JCP, while Kohl’s Corp. (KSS) acquired the Dana Buchman brand; Bluestar Alliance, took over the The Kensie brand.
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