Tapestry to acquire Michael Kors owner Capri Holdings
Tapestry, the parent company of Coach, Kate Spade and Stuart Weitzman, has entered an agreement to buy Capri Holdings.
Under the terms of the transaction, Capri Holdings shareholders will receive $57 per share, which means the deal is valued at around $8.5 billion.
Capri Holdings is a luxury fashion group consisting of Versace, Jimmy Choo and Michael Kors.
Tapestry said the acquisition will build its portfolio in the $200+ billion global luxury market for handbags, accessories, footwear, and apparel, and will also extend its global reach and geographic diversification. It will also widen Tapestry’s product offering. particularly in the footwear and ready-to-wear categories.
Joanne Crevoiserat, chief executive of Tapestry, said: “The combination of Coach, Kate Spade, and Stuart Weitzman together with Versace, Jimmy Choo, and Michael Kors creates a new powerful global luxury house, unlocking a unique opportunity to drive enhanced value for our consumers, employees, communities, and shareholders around the world.”
John Idol, chairman and chief executive of Capri Holdings, added: “We are confident this combination will deliver immediate value to our shareholders. It will also provide new opportunities for our dedicated employees around the world as Capri becomes part of a larger and more diversified company. By joining with Tapestry, we will have greater resources and capabilities to accelerate the expansion of our global reach while preserving the unique DNA of our brands.”
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