New York City — Kate Spade New York intends to buy its Japanese joint venture partner, Sanei International, out of its 51% share in the jointly owned company, Kate Spade Japan.
New York City — As part of a steady international push, Kate Spade New York (ksny) intends to buy its Japanese joint venture partner, Sanei International, out of its 51% share in the jointly owned company, Kate Spade Japan. This is part of a robust international expansion, which includes recent store openings in the United Kingdom, Dubai and Kuwait as well as further expansion into Brazil with additional store openings in Rio de Janeiro and Sao Paulo planned for this summer.
Craig Leavitt, CEO of Kate Spade New York, says: “Kate Spade New York has a long and successful history in the Asian market. We believe the brand has a unique ability to continue to grow internationally and be relevant to consumers around the world. It is our strategy to build a global company to support what is already quickly becoming a global brand.”
The move to acquire the Japanese business aligns with Kate Spade New York’s strategy to fully or partially own the majority of its Asia-based businesses. In May 2011, Kate Spade New York formed a joint venture in China with the E.land group to create a significant brand presence with plans to grow to nearly 300 points of distribution by 2020. At that time, Kate Spade New York also announced its plans to buy back the Hong Kong South East Asia business from its long term distribution partner in January 2014.
The purchase of the Japanese business is expected to be completed in fall 2012. The Japanese business represents the company’s second largest market outside of the U.S. The brand has been in Japan for the past 15 years and currently operates 52 points of sale and expects to expand point of sale growth over the next several years.
Kate Spade has 41 specialty shops in the United States, 94 shops internationally, and new flagships in Brazil and London.