Luxury handbag and accessories company Coach announced on Tuesday, January 6th that it was acquiring Stuart Weitzman Holdings LLC from private equity firm Sycamore Partners for a price of close to $530 million. Coach Inc. also agreed to make up to $44 million in contingent payments to Sycamore Partners if specific revenue targets are reached over the next three years.

Company founder Stuart Weitzman will continue to be employed in his current roles with the company.

Luxury Brand Coach Inc. Buying Shoe Firm Stuart Weitzman

New York-based Coach said it will finance the deal with available cash and other sources of financing available to it in the credit and capital markets. The acquisition is expected to add to its earnings per share, excluding transaction-related costs.

Sources say the transaction is expected to be finalized in the first half of 2015.

Statement from Stuart Weitzman

“We are excited to be working with the Coach team and leveraging its strong infrastructure to help us drive efficiency and expand our product mix to an even broader consumer base worldwide,” Stuart Weitzman, creative director and executive chairman of Stuart Weitzman Holdings, commented in a statement about the transaction on Tuesday.

More on Stuart Weitzman Holdings

High-end shoe maker Stuart Weitzman had around $300 million in revenue for the year ending Sept. 30, 2014. The firm’s shoes are available in 70 countries. Stuart Weitzman shoes can be found in fine specialty and department stores worldwide and in the firm’s own retail stores in the U.S. and Europe.

More on Coach Inc.

Luxury retailer Coach is working hard to transform its brand, both in reducing the level of sales and promotions and in upgrading product offerings. The firm had already announced that it was planning to shutter around 70 under-performing stores over the next year as it sheds costs to try and become more competitive with rapidly growing rivals.