One of Kate Spade's biggest rivals is about to become its new owner. On Monday, the deal was made official when luxury fashion company Coach announced that it would buy Kate Spade for a cool $2.4 billion (AUD $3.2 billion) in cash.
It's good news for both brands. Kate Spade will get to take advantage of Coach's global resources. And Coach will get to add to its portfolio Kate Spade's younger customers and millennial audience.
This isn't the first time that Coach has taken a major fashion label under its umbrella. In 2015, the company bought Stuart Weitzman for $574 million. Since then, Stuart Weitzman's brand has continued to be successful. So we've got our fingers crossed that the same will happen for Kate Spade.
This article previously appeared on InStyle US.