Coach Buys Kate Spade For $2.4 Billion To Cater To Millennials

It’s’s official! The luxury handbag company, Coach, announced that it had bought Kate Spade for $2.4 Billion.

Coach announced this Monday that it has acquired the brand independent company to broaden its customer base and cater to the millennials, Coach wants to preserve Kate Spade’s “Kate” brand. The luxury bag company will reportedly spend $18.50 in cash per share, which makes for a 30% increase from where the stock was trading.

The transaction is expected to close by the end of the third quarter. Coach plans to keep key staff members and hopes to see $50 Million in annual savings with combined inventory management and supply chain.

Kevin Wills, the Chief Financial Officer for Coach said the cost savings would allow Kate Spade to have fewer “online flash sales,” is a change that would help bolster the brand’s image as the maker of authentic luxury products.”

CNNMoney contributed to this article.