Tory Burch Completes A New Round Of Equity Replacement

Tory Burch LLC gained $3 billion 500 million valuation in the latest round of equity replacement, up 56% from its valuation of 2 billion 250 million dollars two years ago, very close to the market value of Kate Spade Co. (NYSE:KATE) 4 billion dollars.

The market value of the two leading Michael Kors Holdings Ltd. (NYSE:KORS) and Coach Inc. (NYSE:COH) Coach in the US is 14 billion 500 million and 10 billion 200 million US dollars respectively.

According to the quoted news, major shareholders of Tory Burch LLC bought small investors in the current round of equity replacement, and the total value of equity pferred was 200 million US dollars.

Access Industries and Tresalia Capital, two private Holdings Company with long held Tory Burch LLC shares, and 2012 BDT BDT Capital Partners LLC and Capital, have retained or increased their stake.

The last paction at Tory Burch LLC took place at the end of 2012. When the company's co founder Chris Burch and Tory Burch reached a compromise settlement, Chris Burch sold half of its 28.3% stake in Tory Burch Burch to the former vice chairman of Goldman Sachs, which was valued at about $2 billion 250 million.

It is not clear whether Chris Burch still owns the equity of Tory Burch LLC, and Tory Burch is the largest shareholder before the original equity replacement.

In order to further expand its global business, Tory Burch LLC, founded in 2004, hired Ralph Lauren Corp. (NYSE:RL) former president in September last year.

The executive vice chairman, Roger Farah, is co CEO and leads the brand development with Tory Burc, chairman and chief executive officer.

Roger Farah, appointed as a member of the board of directors, shares Tory Burch LLC at the same time.

Once again, investors have speculated about the listing of Tory Burch LLC, but Roger Farah and Tory Burch have overturned the possibility. They said at the time that the company was financially sound, cash sufficient and investors were not eager to cash in, so they hoped that the business could be organically developed without having to explain to the public.

According to the news, some shareholders are going to be listed in the next two years, and some shareholders hope to wait until 2017 or 2018 to open to the public market.

People familiar with the matter said

LLC 2013 earned more than $1 billion in revenue and is growing at a speed of close to 20%, of which 1/4 comes from international markets outside the United States.

Now, the brand has 136 independent boutiques in the world, 70 overseas stores, and more than 3000 counters in department stores. The future brands will deepen their expansion in Europe and Asia.

Core products, handbags and footwear accessories contributed 80% of Tory Burch LLC, while garments accounted for the remaining 20%.

Brands actively expand the category outside the core products to promote business growth, not only with Estee Lauder Companies Inc. (NYSE:EL) Estee Lauder group to launch perfume and cosmetics, but also to join Fossil Group Inc. (NASDAQ:FOSL) to enter the watch market to shake the main competition for the hand Michael Kors Kors.

The brand also stepped into the field of wearable devices and joined hands with Fitbit, a California technology company, to design and produce accessories for Fitbit's health tracker product Fitbit Flex.

In the spring of 2015, the first men's wear brand and the sports apparel product line Tory Sport will be listed.

The men's wear series will first focus on accessories for technology and accessories for small leather products, and plans to test the water in the Asian market.

Sportswear will be dominated by yoga, running, golf, tennis and other sports.