New York, USA - US fashion accessories company Coach said on Tuesday it would buy luxury footwear maker Stuart Weitzman in a deal worth up to $574 million to expand its luxury business.

Coach, known for its high-end leather handbags, said it will pay $530 million in cash to private-equity firm Sycamore Partners for Stuart Weitzman Holdings.

Coach could additionally pay up to $44 million depending on the shoemaker hitting certain revenue targets over the three years following the takeover.

The transaction is expected to close by May and immediately add to earnings, Coach said.

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"Stuart Weitzman is a leading American luxury designer footwear brand with a solid growth trajectory and further significant domestic and international development potential," said Victor Luis, Coach chief executive, in the statement.

Stuart Weitzman had about $300 million in net revenues for the fiscal year ended September 30, with sales growing at a 10 percent compounded annual clip over the past five years.

The company's shoes are sold in 70 countries, and it has 118 retail outlets, including 47 in the United States.

Founder Stuart Weitzman will remain as creative director and chairman of the company.

Coach shareholders appeared to welcome the news, sending shares up 0.9 percent to $37.07 in early trade on the New York Stock Exchange.