Fifth & Pacific selling Lucky Brand for $225M
Dec. 10, 2013
NEW YORK (AP) — Fifth & Pacific is selling its Lucky Brand Jeans for $225 million so that it can better focus on its Kate Spade brand.
The New York company, formerly known as Liz Claiborne, has been selling off parts of its business over the past few years. Before announcing the sale Tuesday to an affiliate of private equity firm Leonard Green & Partners LP, it sold its Juicy Couture brand in October to Authentic Brands Group for $195 million.
The Lucky deal includes $140 million in cash and $85 million as a three-year seller note.
Fifth & Pacific Cos. said that Lucky Brand Jeans will assume the proportionate share of its sourcing contract with Li & Fung as well as some of its other obligations. Li & Fung is a wholesaler of clothing, footwear and accessories.
CEO William McComb said proceeds from the Juicy Couture and Lucky Brand sales will be $370 million to $380 million. That includes the face value of the seller note.
"We believe that by focusing all of our resources on the huge opportunity at Kate Spade, we can deliver the strongest value creation opportunity for our shareholders. This is all about bringing Kate Spade to its full potential," he said.
The sale of Lucky Brand is expected to close early next year.