The luxury handbag maker, Coach has announced plans to buy competitor Kate Spade in a deal worth $2.4 billion. Coach will pay $18.50 in cash for each Kate Spade handbag. The increase of nearly 30% from where the stock was trading prior to rumors of a false sale.

“I will NEVER purchase a Kate Spade bag again if it’s not made in the US” said Mrs. Huba.

Both Coach and Kate Spade make most money in the U.S., but both have been working to expand. Kate Spade is known as a playful brand with stripes, polka dots, bright colors and accessories, even handbags shaped like small animals.  Coach is known for being the classic leather brand.

“It expects to eventually generate $50 million in annual savings by combining the firm’s’ inventory management and supply chains,” said Coach.

Coach chief financial officer Kevin Wills said that the cost savings will allow Kate Spade to have fewer “online flash sales,” which means a change that would help the brand’s image as maker of true luxury products.

“The transaction to close by the end of the third quarter. It plans to preserve Kate Spade’s (KATE) “brand independence,” said Coach.