Fifth & Pacific Companies, Inc. Acquires Kate Spade LLC
Download Deal Report As PDF| Date | Status | Stake Acquired | Deal Price | Deal Type |
| December 2006 | Completed | 100% | $124,000,000 | Acquisition |
| Target | Buyer | Seller |
New York, New York, United States Industries: Accessories Retail, Women's Apparel Retail Advisor: Peter J. Solomon Company |
| Deal Amount | |
| Deal Price | $124,000,000 |
| Enterprise Value (EV) | $124,000,000 |
| Financials for Target: Kate Spade LLC | Transaction Multiples | Transaction Multiples w/ Max. Contingency | |||
| Total Assets | N/A | EV / A | EV / A | ||
| Stockholder's Equity | N/A | EV / SE | EV / SE | ||
| Revenues 2006 | $84,000,000 | EV / R | 1.5x | EV / R | |
| Net Income (Loss) | N/A | EV / E | EV / E | ||
| Cash Flow | N/A | EV / CF | EV / CF | ||
| EBITDA | N/A | EV / EBITDA | EV / EBITDA | ||
| Operating Income (Loss) | N/A | EV / OI | EV / OI | ||
| Deal Notes |
| In November 2006, Neiman Marcus entered into a definitive agreement to sell 100% of the ownership interests in Kate Spade LLC to Liz Claiborne, Inc. (consisting of both the original 56% interest and the 44% minority interest subsequently purchased by NMG) for pretax net cash proceeds of approximately $124 million. |
| Business Description for Target: Kate Spade LLC |
Kate Spade, LLC manufactures and markets apparel and accessories for women. The company's products include sweaters, tops, dresses, hats, scarves, pants, jackets, and shoes It also supplies handbags, coin purses, jewelry, gift cards, umbrella, cosmetics and cosmetic cases, hair clips, and sunglasses. The company was founded in 1993 and is based in New York, New York. As of December 2006, Kate Spade, LLC operates as a subsidiary of Lis Claiborne Inc. |
| Business Description for Seller: The Neiman Marcus Group, Inc. |
The Neiman Marcus Group, Inc. is a privately-held luxury retailer with headquarter in Dallas, Texas. The Neiman Marcus Group is comprised of the Specialty Retail Stores division, which includes Neiman Marcus Stores and Bergdorf Goodman, and the Direct Marketing division operating as Neiman Marcus Direct. These retailers offer upscale assortments of apparel, accessories, jewelry, beauty, and decorative home products for the affluent consumer. The company operates Neiman Marcus stores across the United States and Bergdorf Goodman stores in Manhattan. The company also runs Last Call clearance centers. Neiman Marcus Direct, the direct-to-consumer business, conducts both print catalog and online operations under the Neiman Marcus, Bergdorf Goodman, Horchow, Last Call, and CUSP brands. Founded in 1907 by Herbert Marcus, Sr., Carrie Marcus Neiman, and Abraham Lincoln Neiman, Neiman Marcus is owned by private equity firms TPG Capital and Warburg Pincus. |
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