Kate Spade to Acquire Japanese Business from Partner

New York-based Kate Spade New York plans to buy its Japanese joint venture partner, Sanei International, out of its 51 percent share in the jointly owned company, Kate Spade Japan. The move is part of a robust international expansion, which includes recent store openings in the U.K., Dubai, and Kuwait, as well as further expansion into Brazil with additional store openings in Rio de Janeiro and Sao Paulo planned for this summer.

“In order to realize our international potential, we believe partially or wholly owned business models better enable us to connect more directly to our consumers, understanding and investing in their preferences and tastes more keenly,” says Craig Leavitt, ceo of Kate Spade New York. “It is our strategy to build a global company to support what is already quickly becoming a global brand.”

The brand entered Japan 15 years ago and has grown to 52 points of sale. For the fiscal year ended August 31, 2011, Kate Spade Japan's net sales were approximately $71 million. Sales in Japan represent the company's second largest market outside of the U.S.

Kate Spade is owned by Fifth & Pacific Companies Inc. (formerly Liz Claiborne Inc.) and operates 41 specialty shops in the U.S. and 94 shops internationally.