Tapestry Inc. acquires Capri Holdings Jimmy Choo
11.08.2023 4021

Tapestry Inc. acquires Capri Holdings

American Tapestry Inc., which owns the brands Coach, Kate Spade and Stuart Weitzman, is buying Capri Holdings, the owner of fashion houses Michael Kors, Jimmy Choo and Versace, for $8,5 billion, the two companies said in a joint press release.

Tapestry will pay $57 per share of Capri, up 65% from the company's closing price on Wednesday. The deal has been approved by the boards of directors of both companies and will close in 2024.

The result will be "a combination of six complementary brands with a global reach." Combined sales of Tapestry and Capri last fiscal year exceeded $12 billion, with adjusted operating income of about $2 billion.

The merger of the two companies is expected to generate cost savings of more than $200 million over the three years following closing by reducing transaction costs and improving supply chain efficiency. Capri soared 58% in early trading on Thursday, while Tapestry tumbled 4,1%.

 

American Tapestry Inc., which owns the brands Coach, Kate Spade and Stuart Weitzman, is buying Capri Holdings, the owner of fashion houses Michael Kors, Jimmy Choo and Versace, for $8,5 billion.
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