Sarah Jacobs
Two big-name deals announced on Monday will line the pockets of a number of boutique investment banks.The luxury retailer Coach said in a statement that it agreed to buy Kate Spade for $18.50 a share, for a total transaction value of $2.4 billion. And Sinclair Broadcast Group confirmed that it has agreed to buy Tribune Media for about $3.9 billion, or for $43.50 per share.
The deals represent a big payday for a handful of boutique investment banks.
Two New York-based investment banks, Moelis & Company and Guggenheim Securities, worked with Tribune, while JPMorgan was Sinclair's financial advisor in the acquisition deal.
It's another win for Moelis & Company and Guggenheim. Moelis, a boutique investment bank, just announced its second record quarter in a row. The company said last month that it is now looking for top-tier talent to add to its roster.
Guggenheim recently advised Zeltiq on its $2.5 billion sale to Allergan, a deal where Moelis was advising the buyer. It also advised Allergan on its $2.9 billion deal for LifeCell in December and Verizon on the $3.6 billion sale of 24 data centers to Equinix.
Coach's financial advisor in its acquisition of Kate Spade was Evercore Group, a New York-based bank. Meanwhile, Kate Spade & Company's financial advisor was Perella Weinberg Partners, another New York-based financial services firm.
Evercore earlier this year advised Takeda on a $5.2 billion deal for Ariad Pharmaceuticals. And Perella Weinberg has a strong run in recent weeks, working on Beckton Dickinson's $24 billion deal to acquire the medical technology company Bard, and advising Cardinal Health in a $6.1 billion deal with Medtronic.
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