Will Coach choose Choo?
According to the New York Post, luxury handbag maker Coach is considering an acquisition of Jimmy Choo, a brand famous for its master-crafted shoes. The reports come as Coach is battling with rival Michael Kors to buy Kate Spade. Citing the London Telegraph, the Post writes that Coach is “scouring for luxury brands to buy following last year’s failed £20 billion tilt at British fashion house Burberry.”
Coach’s share price is up 11% so far this year
SOURCE: Yahoo Finance
According to the post, acquiring Jimmy Choo could be worth “more than $1.3 billion”. Choo’s owner, Luxembourg-based conglomerate JAB, has confirmed that the iconic shoemaker is up for sale, and that it will focus further on its “stable of coffee brands”.
The Post said:
“The report, which cited bankers as sources, said Jimmy Choo was ‘unlikely to attract luxury houses such as Kering or LVMH, which have been working to streamline their businesses, rather than expand.’”
Coach’s chief executive, Joshua Schulman, is a former boss of Choo, and the relationship that implies could give Coach the edge in an acquisition over competitors like Mayhoola, the Middle Eastern firm behind luxury businesses like Anya Hindmarch, Valentino and Balmain.
Dominion holds Coach in its Global Trends Luxury Fund.
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