Coach-owner to acquire Versace, Jimmy Choo and Michael Kors

Tapestry Inc., which owns brands Coach, Kate Spade and Stuart Weitzman, will acquire Capri Holdings Limited, the global luxury fashion group consisting of Versace, Jimmy Choo and Michael Kors for approximately $8.5 billion. The deal could help the new U.S. luxury powerhouse better compete against their higher-end European rivals LVMH and Kering, according to CNN.

Once the acquisition closes, anticipated for the end of 2024, the six complementary brands with global reach will have projected annual sales of more than $12 billion across more than 75 countries. The combined brands are anticipated to realize more than $2 billion in cost synergies within three years post-closing, supported by operating cost savings and supply chain efficiencies.

“We are excited to announce the acquisition of Capri Holdings – uniting six iconic brands and exceptional global teams,” Joanne Crevoiserat, Tapestry’s CEO said, in a press release. “Tapestry is an organization with a passion for building enduring brands through superior design and craftsmanship and an unwavering focus on our customers. Importantly, we’ve created a dynamic, data-driven consumer engagement platform that has fueled our success, fostering innovation, agility and strong financial results. From this position of strength, we are ready to leverage our competitive advantages across a broader portfolio of brands. 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 D. Idol, Capri Holdings’ chairman and CEO said, “Today’s announcement marks a major milestone for Capri. It is a testament to all that our teams have achieved in building Versace, Jimmy Choo and Michael Kors into the iconic and powerful luxury fashion houses they are today. 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.”

Tapestry’s acquisition builds its portfolio in the more than $200 billion global luxury market for handbags, accessories, footwear and apparel, where the company has deep experience and expertise. Additionally, the deal extends Tapestry’s global reach and geographic diversification given the Tapestry and Capri Holdings highly complementary respective positions in Asia and Europe. Tapestry’s product offerings will also be increased through a broader penetration of lifestyle categories, notably footwear and ready-to-wear, where Capri Holdings brings extensive expertise with further opportunity for growth, the company said.