Tapestry Mergers and Acquisitions Presentation Deck
Compelling Financial Opportunity to Create Shareholder Value
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Clear and Achievable Synergies
Meaningful cost synergies through operational efficiencies,
improved scale and inventory management, and the
optimization of Kate Spade's supply chain network
Estimated run-rate cost synergies of approximately $50 million
within three years following the closing
Will provide transparency going forward on any additional
synergies identified
Accretive to Earnings
Assuming an early July 2017 closing, acquisition expected to
be accretive to EPS in fiscal 2018 on a non-GAAP basis
Expected to reach double-digit accretion on a non-GAAP basis
by fiscal 2019
COACH INC.
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COACH STUART WEITZMAN
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Robust Credit Profile
On a Debt-to-EBITDA basis, expect to reduce leverage from
approximately 2.2x to about one-turn lower by end of FY2018
Expect to operate at moderate leverage to maintain financial
flexibility
Will maintain ample liquidity on the balance sheet
Committed to dividend
The combination of Coach and Kate Spade expected to create substantial value for shareholders
Significant Tax Asset
Opportunity to utilize Kate Spade's estimated gross NOLs of
approximately $475 million over the near-term
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