Robert Alexander/Getty Images(NEW YORK) — Luxury retailer Coach has bagged a deal with its smaller rival, Kate Spade.
Coach announced Monday it would buy Kate Spade & Co. for $2.4 billion in cash as it aims to boost its popularity among millennials. Kate Spade is expected to continue as an independent brand with its own stores.
“The acquisition of Kate Spade is an important step in Coach’s evolution as a customer-focused, multibrand organization,” Coach chief executive Victor Luis said in a statement.
Coach said it expects to generate approximately $50 million in savings from the deal within three years.
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