Coach to Offer Bid for Jimmy Choo Acquisition

Coach may offer a bid to acquire luxury shoe brand Jimmy Choo, which may be worth more than $1.3 billion.

According to an article on The Telegraph, Coach may offer a bid to acquire luxury shoe brand Jimmy Choo. The brand is said to be worth more than $1.3 billion.

Last week, JAB Luxury, Jimmy Choo’s parent company, put the brand up for sale. The brand was said to be accepting offers, however, no offers had been made yet. JAB Luxury 67.7% of Jimmy Choo shares, which increased by 1.7% on Monday.

Coach is currently looking to buy brands as it tries to increase sales and profits at the company. The brand “is scouring for luxury brands to buy following last year’s failed £20bn tilt at British fashion house Burberry,” according to sources.

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Last year in December, the brand made several bids to buy Burberry but was rejected. The market value of the deal would have apparently been more than $20 million. Offers and proposals were informal an indicated a cash and stock takeover of the brand. It was, however, not know at what premium the offers were made or if the brands ever even spoke about the deal.

In January, both Coach and Michael Kors were said to be interested in acquiring Kate Spade. The brands were reportedly in talks with their boards about offering a bid. Kate Spade was also said to be holding a formal auction that month.

A couple of months later, Coach was said to be announcing the acquisition of Kate Spade. Analysts have speculated that the brand could be purchased for as much as $2 million. The brand also didn’t have an auction but rumors kept circulating that the brand would sell when it said it was “conducting a process to explore and evaluate strategic alternatives to further enhance shareholder value.” The company, however, said the brand’s looking at options may not result in a transaction.

The brand also acquired Stuart Weitzman a couple of years ago for $574 million. The luxury shoe brand has since made sales and profits increase at the company.

Sources said that the brand will probably purchase Jimmy Joo as it recently hired the brands former CEO Joshua Schulman. It was also said that Jimmy Choo probably won’t get offers from companies like LVMH or Kering as they are tying to improve their businesses rather than acquire more brands.

Both Coach and Jimmy Choo have declined to comment.

So, what do you think? Will Coach acquire Jimmy Choo? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.


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