Home / Knowledge / News / Apparel/Garments / Kate Spade acquires its SE Asian business from Globalluxe
Kate Spade acquires its SE Asian business from Globalluxe
12
Feb '14
Kate Spade, LLC & Kate Spade Hong Kong Ltd. (together, "Kate Spade"), both wholly-owned subsidiaries of Fifth & Pacific Companies, Inc. 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 Singapore, Malaysia, and Indonesia, KATE SPADE announced that Valiram, its new partner in these countries 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. In Thailand, Kate Spade has entered into a direct distribution agreement with AT Luxury, Globalluxe's current sub-distributor.
 
For fiscal year 2013, Globalluxe's retail net sales for the kate spade new york brand were approximately $44 million, an increase of 25% from the prior fiscal year on a local currency basis, with pro forma operating margins in the mid-teens. 
 
Globalluxe and its distribution partners operated six stores and one concession in Hong Kong, one concession in Taiwan, one store in Macau, two stores and one concession in Singapore, two stores in Malaysia, three stores and one concession in Indonesia, and two stores and six concessions in Thailand. 
 
Prior to the Southeast Asia buyout, Kate Spade maintained wholesale distribution to Globalluxe.  Following the Southeast Asia buyout, Kate Spade will maintain wholesale distribution to Valiram and the distributor in Thailand and recognize direct-to-consumer sales in Hong Kong, Macau and Taiwan. We expect that the profit from the now fully owned retail operations that include direct-to-consumer distribution will be incremental to the wholesale profits generated in 2013. 
 
The expected incremental sales and profits resulting from these transactions are reflected in the sales and adjusted EBITDA guidance previously provided by Fifth & Pacific Companies, Inc.
 
Pursuant to this acquisition and the KATE SPADE joint venture in China, Kate Spade established an Asian regional headquarters in Hong Kong and has recruited local talent to manage the operations purchased from Globalluxe.
 
The Hong Kong regional headquarters also helps manage other brand operations and partnerships in the region including the joint venture in China and the newly formed distribution arrangements for Singapore, Malaysia, Thailand and Indonesia.
 

Fifth And Pacific


Must ReadView All

Apparel/Garments | On 22nd Sep 2017

Govt announces new duty drawback rates for garments

The Government of India has today announced the new duty drawback...

Courtesy: ITMA

Textiles | On 22nd Sep 2017

ITMA 2019 to focus on smart garment technologies

ITMA 2019, the world's largest textile and garment technology...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search