Coach has agreed to acquire women’s footwear brand Stuart Weitzman from private equity firm Sycamore Partners in a deal valued at up to $574m (£380m).
Victor Luis, chief executive of US accessories and lifestyle brand Coach, said: “Stuart Weitzman is a leading American luxury designer footwear brand with a solid growth trajectory and further significant domestic and international development potential.
“Importantly, the size, scope and vibrancy of the Stuart Weitzman brand, along with the continuity of its management team, allows for a seamless transition to Coach ownership, as we continue to focus on Coach’s brand transformation.”
Stuart Weitzman operates 47 stores in the US and 71 internationally, including seven directly-operated locations, 18 shop-in-shops and ecommerce sites in the US, Canada, Europe and Hong Kong. There are no standalone stores in the UK, but stockists include Selfridges and Harrods.
The brand reported net revenues of approximately $300m (£199m) for the year to September 30, 2014.
Creative director and executive chairman Stuart Weitzman said: “In Coach we have found a strategic partner that respects our culture and offers the scale, resources and global business acumen to enable us to realise our full potential. “
The brand said sales have increased at a 10% compound annual growth rate over the last five years, driven by distribution, ecommerce and same store sales gains.
Stuart Weitzman will continue as creative director and executive chairman, alongside Wayne Kulkin who continues in the role of chief executive.
Sycamore Partners’ current investment portfolio includes Aéropostale, Kurt Geiger and Nine West Holdings.
Coach is set to showcase its first men’s ready-to-wear range on January 9, 2015, as part of London Collections: Men. It has also appointed Fabrizio Stroppa as vice president for wholesale partnerships and Sadie Tew as vice president for retail and customer experience to lead the expansion of the brand in Europe at the end of last year.