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Labelux, a German luxury goods company, will purchase Jimmy Choo, Ltd. from TowerBrook Capital for a reported $650-895 million. Under Labelux, the high-end women’s shoe and bag maker will be expanding its line and focus on developing the Asian market, particularly in China. Co-founder Tamara Mellon, of British Vogue fame, will retain her minority share of the company and continue serving as Chief Creative Officer.

QUESTIONS:

  1. Based on your reading of the article, what dynamic forces make this a good acquisition for Labelux?
  2. What competitive advantage(s) does Jimmy Choo gain from being acquired by Labelux, which also owns Bally Shoe?
  3. Describe the level of environmental uncertainty for Jimmy Choo moving forward.

SOURCE: M. Haddon, “Labelux Buys Jimmy Choo,” Wall Street Journal (Retrievable online at http://online.wsj.com/article/SB10001424052702304066504576339423661349398.html)

 

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