Owner Fifth & Pacific, which recently disclosed that it would be selling off a few of its brands to focus on growing its cash cow Kate Spade, announced Tuesday that it closed a deal with private equity firm Leonard Green & Partners LP, now the lucky owners of denim brand Lucky. Green shelled out $225 million for the label.
The announcement follows the sale of Juicy Couture in October for $195 million to Authentic Brands Group.
We were a little surprised that Lucky sold for more than Juicy - but that could be due to the nature of the Juicy deal. Fifth & Pacific continues to run Juicy's retail operations, while ABG owns the Juicy brand.
In a release, William L. McComb, CEO of Fifth & Pacific described the sale as "a return to our roots as a mono-brand company." He added, "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."
Kate Spade itself is not just one brand, but three. There's Kate Spade, Jack Spade and now Kate Spade Saturday. With an estimated $380 million in its pocket following the Juicy and Lucky transactions, perhaps that number will increase.