Frederick Goldman has purchased the assets of longtime bridal rival Scott Kay Inc.
The purchase price was not disclosed.
Kay died suddenly on Dec. 4. The deal was not in the works before his death, says Frederick Goldman chairman and CEO Jonathan Goldman.
“An opportunity came up that we thought was terrific for both parties,” he says. “[Kay’s family] is thrilled Frederick Goldman is the purchaser.”
Scott Kay will keep its current Teaneck, N.J., headquarters and will operate as a wholly owned subsidiary of Frederick Goldman. Goldman says that he hopes to keep most of the current company staff, including the designer’s daughter Tiffany, who will continue as vice president of merchandising.
CEO David Minister, however, will be leaving. Adam Gurian, currently Goldman’s executive vice president of global sales and merchandising, will become general manager of the Kay brand, working out of Goldman’s headquarters in New York City.
“The company has great recognition both on the trade side and the consumer side,” Goldman says. “They have terrific people there that the industry may not know, both in the design group and the marketing group.”
“Scott in his design room left about 10 years of unbelievable designs” that Goldman hopes to bring to market, Goldman adds.
Goldman will also continue Kay’s sales on QVC, which premiered Super Bowl Sunday.
“That was an agreement signed by Scott prior to our purchase,” Goldman says. “And I understand [the sale] performed quite well.”
But his company was mostly interested in Kay for its higher price points.
“We look at Scott Kay as a better price point than what we offer,” Goldman says. “It’s much more of a luxury, higher price point.”
It also respects its strong name recognition.
“We believe that it is one of the best brand names out there and we hope to make it an even bigger brand than before,” he adds. “I love to do acquisitions and building and marketing and this fits right in that wheelhouse.”
The purchase is a seemingly odd matchup for two companies that had sometimes feuded. When Kay launched a campaign questioning tungsten carbide, Frederick Goldman complained to the Federal Trade Commission.
“There is always tension between competitors,” Goldman says. “We are happy that Scott Kay is going to continue and thrive and going to develop new markets and new products.”