Coach Buying Stuart Weitzman, Plans to Transform Brand

Luxury handbag company Coach is expanding its footwear collection, buying Stuart Weitzman Holdings from private equity firm Sycamore Partners for about $530 million. Coach is in the midst of transforming its brand. The company previously announced that it plans to close about 70 underperforming stores in fiscal 2015. Stuart Weitzman had approximately $300 million in revenue for the 12 months that ended September 30, 2014. New York-based Coach said it will finance the deal with available cash and other sources of financing available to it in the credit and capital markets. The acquisition is expected to add to its earnings per share, excluding transaction-related costs. The deal is expected to close by May.