Coach Agrees to Buy Kate Spade in $2.4 Billion Deal

Coach is acquiring Kate Spade for $2.4 billion, a deal in the making for three months. The acquisition aims to boost sales and expand Coach's brand portfolio, similar to European fashion conglomerates. Kate Spade's share price has fluctuated significantly, with the final deal price set at $18.50 per share. Coach expects $50 million in synergies, focusing on cost efficiencies and leveraging strategies that worked with their previous acquisition of Stuart Weitzman.

What was the initial share price of Kate Spade in 2015 before the acquisition rumors?

• $18.50

• $40

• $30

• $16

Why did Coach decide to acquire Kate Spade?

• To enter the European market

• To expand its brand portfolio and increase sales

• To diversify into electronics

• To eliminate competition

Which brand did Coach acquire before Kate Spade?

• Stuart Weitzman

• Prada

• Michael Kors

• Jimmy Choo

What is the expected synergy value from the Coach and Kate Spade deal?

• $10 million

• $50 million

• $100 million

• $200 million

How does Coach plan to achieve cost efficiencies with the acquisition of Kate Spade?

• By increasing product prices

• By closing retail stores

• By using the same strategies to cut costs as with previous acquisitions

• By reducing the workforce