Liz Claiborne to acquire Kate Spade
by Staff -- Home Textiles Today, 11/8/2006 1:29:00 PM
New York — Liz Claiborne today said it will purchase Kate Spade LLC for about $124 million, including the retirement of debt. The deal is expected to close during the current fourth quarter.
Positioned as “accessible luxury,” and targeting women across all age groups, Kate Spade generated sales of $84 million in fiscal 2006. The company ended its home textiles licensing agreement with Springs Industries 18 month ago and, to date, has not re-entered the business, although it earlier said it had plans to do so.
Reporting $1.37 billion in sales for the third quarter last month, Liz Claiborne licenses an extensive soft home line through American Pacific Enterprises.
"Our job now is to maintain the essence of Kate Spade while driving it to the next level -- something we have done quite successfully with other acquired brands in our portfolio," said Trudy Sullivan, president of Liz Claiborne.