Kiss Me, Kate

Liz Claiborne Inc. (New York) has agreed to purchase all of the equity interest in Kate Spade LLC (New York) for a purchase price of approximately $124 million.

“We are thrilled to welcome this iconic American brand into our company,” said Liz Claiborne president Trudy Sullivan. “With its accessible luxury positioning, Kate Spade further diversifies our portfolio and provides considerable opportunity for organic growth. Our core competencies in both non-apparel and retail will enable us to uniquely capitalize on this compelling brand. We believe the potential for Kate Spade in the direct-to-consumer channel, both domestically and internationally, is sizeable. We also feel there are substantial growth prospects in both domestic and international wholesale accounts, as we optimize the penetration in upscale department and specialty stores. Brand extensions into apparel categories, fragrance and licensing offer additional avenues for expansion.”

Kate Spade is a designer, marketer, wholesaler and retailer of fashion accessories for women and men through its Kate Spade and Jack Spade brands. The company generated net sales of approximately $84 million for the fiscal year ended July 30, 2006.

It had been 56 percent owned by The Neiman Marcus Group (Dallas) from 1999 until September 2005, when it reached an agreement to explore “various strategic alternatives,” including possible sale of the company. The purchase price was said to be exceeding $130 million until this past summer, when falling revenues put the sale process on hold. Liz Claiborne was long identified as one of the suitors. Another interested party was VF Corp. (Ft. Pierce, Fla.), which owns a number of brands, including North Face and Nautica.

Liz Claiborne's other brands include Axcess, Bora Bora, C & C California, City Unltd., Claiborne, Crazy Horse, Curve, Dana Buchman, Elisabeth, Ellen Tracy, Emma James, Enyce, First Issue, Intuitions, J.H. Collectibles, Juicy Couture, Kenzie, Kenziegirl, Laundry by Shelli Segal, LIZ, Liz Claiborne, Lucky Brand Jeans, Mac & Jac, Mambo, Marvella, Mexx, Monet, Monet 2, Prana, Realities, Sigrid Olsen, Soul by Curve, Spark, Stamp 10, Tapemeasure, Tint, Trifari, Villager and Yzza.