Coach preparing to buy Kate Spade

According to Business of Fashion, Coach is readying what is now seen as their imminent takeover of Kate Spade. The estimated price tag of the acquisition is 2 billion dollars. Neither Coach or Kate Spade are commenting on the potential for the transaction.

Several other companies have been eyeing bids for Kate Spade, including overseas retailers and Michael Kors. Cowen & Cowen raised the target price of Kate Spade with an 80 percent chance it will be sold.

Coach, which was struggling over the past several years due to heavy discounting, lost margins and store closures, has since rebounded and is now in an excellent position to acquire another brand.

The bid for Kate Spade on the horizon

Creative director Stuart Vevers has managed to position Coach as more of a luxury brand, bring its appeal to millennials and turn the brand's sales around. The millennial appeal has been a big part of their newly found traction, as they brought in pop star Selena Gomez to design her own line for the brand.

Coach is no stranger to brand acquisition either. In 2015, they acquired Stuart Weitzman, a deal that has proven a profitable endeavor. The brand helped lift last quarter results by 26 percent.

However, Coach can't just sail to claiming Kate Spade as its next prize. Sources say that Michael Kors is still interested in buying the brand, so there could be a potential bidding war at stake.

All eyes are on Kate Spade in the next coming weeks as we prepare to find out who their new owner will be.

photo: via Kate Spade Facebook