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NEW YORK--Liz Claiborne Inc., moving to expand its reach into luxury department stores, Wednesday said it agreed to acquire privately held Kate Spade LLC, a maker of high-end fashion accessories, for $124 million (97 million) in cash.
The deal, expected to close late this year, includes an undisclosed amount of assumed debt.
New York-based Kate Spade, which makes the kate spade and Jack Spade brands, had net sales of about $84 million (65.75 million) for the year ended July 30. Its product line includes handbags, small leather goods, accessories, luggage and baby products.
Kate Spade sells in U.S. department stores, including Neiman Marcus, Saks Fifth Avenue, Nordstrom, and Bloomingdale's, as well as 19 Kate Spade stores, four Kate Spade outlets and one Jack Spade store.
Kate Spade also has distributors in Asia and licensing agreements for shoes, eyewear, tabletop and paper products.
Despite having more than $5 billion (3.9 billion) in annual sales and more than 40 brands in its stable, Liz Claiborne, also based in New York, so far has been a limited player in handbags and accessories. Its brands include Ellen Tracy, Dana Buchman, Lucky Brand, and Juicy Couture.
Neiman Marcus Group Inc., which owned a majority stake in Kate Spade, put the company on the market in September 2005.
In morning trading, shares of Liz Claiborne edged up 7 cents to $42.12 on the New York Stock Exchange.
