Connect with us

Headlines

Tapestry to Acquire Capri Holdings

$8.5 billion deal to unite six luxury brands

mm

Published

on

Tapestry to Acquire Capri Holdings
The Michael Kors brand is one of the luxury flags involved in Tapestry’s buy of Capri Holdings. PHOTOGRAPHY: Robert Way/iStock.com

Tapestry Inc. (New York), operator of the Coach, Kate Spade and Stuart and Capri brands, is buying Capri Holdings Ltd, a global fashion luxury group consisting of Versace, Jimmy Choo and Michael Kors. The all-cash deal, valued at $8.5 billion, is subject to approval by the Capri Holdings shareholders, as well as the receipt of required regulatory approvals, and other customary closing conditions. It is expected to close next year.

In all, the two brands operate about 2,700 stores: Tapestry has Coach (945 directly owned stores), Kate Spade (398 stores), and Stuart Weitzman (100 stores), while Capri ‘s holdings are Michael Kors (810 stores), Jimmy Choo (237 stores) and Versace (224 stores).

Deal participants say acquisition “brings together six highly complementary brands with global reach, powered by Tapestry’s data-rich customer engagement platform and diversified, direct-to-consumer operating model. The combined company generated global annual sales in excess of $12 billion with a presence in over 75 countries and achieved nearly $2 billion in adjusted operating profit in the prior fiscal year.”

“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,” Tapestry CEO Joanne Crevoiserat said in a news release.

Capri Chairman and CEO John D. Idol said, “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.”

Deal participants expect to realize over $200 million in run-rate cost synergies within three years post-closing, supported by operating cost savings and supply chain efficiencies.

Advertisement

SPONSORED VIDEO

Get in on the action with OGI Eyewear

OGI Eyewear is a Game Changer for your independent optical practice. Hey Guys, OGI Eyewear is a Game Changer for your independent optical practice. Celebrate your unique identity, and your patient's individuality, with crafted, kinetic styles designed to flatter and amplify every wearer’s beauty. We are here to help you elevate style and up the fun factor. This season continues OGI’s love affair with wearable and vibrant color, diving into blues, oranges, and greens. Pairing these colors with rich tortoise patterns and thrilling new shapes creates a fresh revamp on retro styles. Get in on the action with OGI Eyewear, and make this year an Eye-conic one. For more information, visit here.

Promoted Headlines

Advertisement

Advertisement

Subscribe

INVISIONMAG.COM
BULLETINS

Get the most important news and business ideas for eyecare professionals every weekday from INVISION.

Advertisement

Advertisement

Most Popular