New York–Jones Apparel Group, Inc. plans to acquire a 55% stake in Stuart Weitzman Holdings, LLC, a privately-held women’s footwear and accessories, for $180 million.
Under the terms of the agreement announed today, Jones will make initial cash payments of approximately $180 million to selling shareholders, including Irving Place Capital, for a 55% interest in Stuart Weitzman, LLC. Stuart Weitzman will be the principal owner of the remaining 45% interest. The selling shareholders will receive cash payments for their remaining interest at the end of 2012, based upon the value of Stuart Weitzman, LLC at that time in accordance with a pre-determined formula.
Over the last five years, Stuart Weitzman, LLC has experienced significant growth, including adding 20 full-priced stores and opening its first five outlet stores domestically. During the same time period, Stuart Weitzman, LLC opened its first seven stores, including flagship stores in Rome and Milan, while further expanding its global footprint with the opening of 19 incremental licensed stores. Stuart Weitzman will continue as executive chairman of Stuart Weitzman, LLC and together with Wayne Kulkin, president of Stuart Weitzman, LLC, and their management team.
Crediting Irving Place Capital as a partner in the brand’s global expansion, Weitzman added: “Together, we determined that the time was right to take the company to the next level by teaming up with Jones. Jones has the resources to scale the business to maximize future growth and a rich history of understanding and supporting the entrepreneurial nature of its various businesses. I am extremely confident that, because of its appreciation of our brand vision, we have found a strategic partner to help us maximize our growth opportunities.”