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Fifth & Pacific Sells Lucky Brand for $225 Million

In an effort to concentrate its energies on its Kate Spade brand, Fifth & Pacific (FNP) is selling Lucky Brand jeans for a reported $225 million.

The buyer is an affiliate of the private equity firm Leonard Green & Partners LP, which will be paying $140 million in cash while an additional $85 million will be financed as a three-year seller note. The deal is expected to be finalized by the end of the first quarter of 2014.

Once known as Liz Claiborne, Fifth & Pacific has been streamlining its operations as part of a grand strategy to revamp Kate Spade. Last October, it sold its Juicy Couture brand for $195 million to the Authentic Brands Group. FNP CEO William McComb said, “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.”