Kate Spade sold for $124m
NEW YORK -- Liz Claiborne Inc. said it will buy fashion handbag maker Kate Spade LLC for $124 million from Neiman Marcus Group Inc., adding to its brands that include Juicy Couture.
The purchase price includes the retirement of debt, New York-based Liz Claiborne said yesterday. The transaction will close in the fourth quarter and will be "slightly dilutive" to 2007 earnings, Liz Claiborne said.
Neiman Marcus, the closely held luxury retailer, and Kate and Andy Spade had been seeking a buyer for more than a year. This month, Neiman Marcus agreed to acquire the rest of Kate Spade for about $59 million while it continued a search for a buyer. Liz Claiborne has purchased brands including Mexx to increase its number of labels to more than 40.
Neiman Marcus, based in Dallas, and Kate Spade put the fashion handbag maker on the auction block in September 2005. Neiman Marcus purchased its initial 56 percent stake from Alex Nortel Inc. in 1999 for $33.6 million. 