New York—Kate Spade has completed the acquisition of its Hong Kong, South East Asia business from long-term distribution partner Globalluxe.
The $34 million acquisition was announced last year and is part of the company’s strategy to fully- or partially-own the majority of its Asia-based businesses.
In Hong Kong, Macau, and Taiwan, Kate Spade will directly own and operate the businesses previously operated by Globalluxe.
For fiscal year 2013, Globalluxe’s retail net sales for the kate spade new york brand were approximately $44 million, an increase of 25% from the prior fiscal year, the company said.
In Singapore, Malaysia, and Indonesia, Valiram, Kate Spades new partner in these countries, will operate the kate spade new york and Kate Spade Saturday businesses through distribution agreements. Valiram will also fund around $1.5 million of the transaction value to acquire operating assets in certain regions.
In Thailand, Kate Spade has entered into a direct distribution agreement with AT Luxury, Globalluxe’s current sub-distributor.
Kate Spade is owned by Fifth & Pacific Companies, Inc. which is scheduled to change its name to Kate Spade & Company following the release of fourth quarter earnings results on February 25.