Coach Agrees to Buy Kate Spade for $2.4 Billion

  • The $18.50-a-share price is well below stock’s highs this year
  • Coach vows to unlock Kate Spade’s ‘untapped’ growth potential

Coach Agrees to Buy Kate Spade in $2.4 Billion Deal

Coach Inc. investors think the luxury brand just found itself a bargain.

The company’s shareholders applauded its $2.4 billion acquisition of Kate Spade & Co., sending Coach on one of its biggest rallies in months. Kate Spade, a rival maker of handbags and other accessories, will fetch $18.50 a share as part of the deal -- a price that’s well below where its stock traded earlier this year.