admin Luxury fashion group Tapestry, the parent company of Coach, Kate Spade, and Stuart Weitzman, has reached a definitive agreement to acquire competitor Capri Holdings Limited.
Under the terms of the transaction, Capri Holdings shareholders will receive 57 dollars per share, valuing the deal at approximately 8.5 billion dollars, the companies announced Thursday.
Capri Holdings, whose portfolio comprises luxury labels Michael Kors, Versace, and Jimmy Choo, said the deal will result in the establishment of a “powerful global house of iconic luxury and fashion brands”.
The combined company’s portfolio of brands generated global annual sales in excess of 12 billion dollars for the most recent year, and an adjusted operating profit of nearly 2 billion dollars.
The combined company is present in 75 countries.
Tapestry acquires Versace owner Capri Holdings
“We are excited to announce the acquisition of Capri Holdings – uniting six iconic brands and exceptional global teams,” said Tapestry CEO Joanne Crevoiserat in a statement.
She said the coming together of the six fashion labels “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 D. Idol, the chair and CEO of Capri Holdings, said the announcement “marks a major milestone” for the business.
“We are confident this combination will deliver immediate value to our shareholders,” he said. “It will also provide new opportunities for our dedicated employees around the world as Capri becomes part of a larger and more diversified company.”
Idol said the deal will provide Capri Holdings with “greater resources and capabilities to accelerate the expansion of our global reach while preserving the unique DNA of our brands”.
