Coach Acquires Stuart Weitzman

Luxury handbag and accessories company Coach Inc is acquiring women's luxury footwear company Stuart Weitzman Holdings LLC from its current owner, Sycamore Partners.

On Tuesday the company announced that it would make an initial cash payment of about $530 million to Sycamore Partners with $44 million give or take depending upon achievement of "certain revenue targets" over the next three years from its acquisition. Stuart Weitzman, the company’s 72-year-old executive chairman and creative director will retain his position of chairman of Stuart Weitzman Holdings.

The deal is expected to bolster Coach’s image while creating growth opportunities as it struggles to turn around its brand under new CEO Victor Luis, who took the post in January 2014. The company has been facing declining sales with competition from Michael Kors and Kate Spade. By acquiring Stuart Weitzman the company hopes to boost its sales from Stuart Weitzman’s hip lineup of shoes and sandals. The deal is expected to close by May.