Kate Spade, LLC and Kate Spade Hong Kong Ltd. announced the acquisition of the Kate Spade businesses in Hong Kong, Macau, Taiwan, Malaysia, Singapore, Indonesia and Thailand from their long term partner Globalluxe.
The total transaction value was approximately $34 million, including $4 million for working capital and other previously agreed adjustments with the payment to Globalluxe due in the first quarter of 2014.
In Hong Kong, Macau and Taiwan Kate Spade will directly own and operate the related businesses previously operated by Globalluxe. In Thailand, Kate Spade has entered into a direct distribution agreement with AT Luxury, Globalluxe’s current sub-distributor.
In Singapore, Malaysia, and Indonesia Kate Spade announced that its new partner, Valiram, will operate the Kate Spade New York and Kate Spade SATURDAY businesses through distribution agreements and will fund approximately $1.5 million of the transaction value to acquire operating assets in certain regions.
Kate Spade first entered the Asian market in 2004 with the opening of its flagship store in Tokyo. The completion of this transaction came right on time as the company is looking to select new Asian territories.
In an interview with Business of Fashion, Craig Leavitt, chief executive of Kate Spade New York said the company will continue global growth and is on the path to becoming a $2 billion brand.