Coach extends tender offer to acquire Kate Spade

Coach on Friday announced that it has extended its tender offer to acquire Kate Spade & Company. Chelsea Merger Sub Inc., a wholly owned direct subsidiary of Coach, extended the offer to 5:00pm EST on July 10, 2017.
Coach brand ambassador Selena Gomez in the Coach fall 2017 campaignCoach Coach - Coach

The New York City-based design house and Kate Spade agreed to an acquisition for $2.4 billion, or $18.50 per share, in May. The purchase price is to be funded by senior notes, bank term loans and $1.2 billion. The offer was initially launched on May 27, 2017 and was previously scheduled to expire at 11:59pm EST on June 23, 2017.
Kate Spade was eyeing a sale in late 2016 due to pressure by Caerus Investors. The US hedge fund sent a letter to the Kate Spade Board of Directors explaining its frustration for the New York City-based accessories brand’s inability to achieve profit margins.
Coach ultimately won a bidding war with Michael Kors to acquire Kate Spade.

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