U.S. luxury giant Tapestry Inc. announced it has acquired American luxury rival Capri Holdings, the owner of Versace, Jimmy Choo, and Michael Kors, in a deal that values Capri at close to USD 9 billion.
Under the terms of the transaction, Capri Holdings shareholders will receive USD 57.00 per share in cash for a total enterprise value of approximately USD 8.5 billion.
The acquisition brings together six “highly complementary brands with global reach,” according a joint press release issued by Capri and Tapestry, the owner of Coach, Kate Spade, and Stuart Weitzman brands, and will see the company leverage “Tapestry’s data-rich customer engagement platform and diversified, direct-to-consumer operating model.”
The newly established company generates global annual sales is in excess of USD 12 billion, with a presence in over 75 countries, achieving nearly USD 2 billion in adjusted operating profit in the prior fiscal year.
“We are excited to announce the acquisition of Capri Holdings – uniting six iconic brands and exceptional global teams,” said Joanne Crevoiserat, chief executive officer of Tapestry, Inc.
“Tapestry is an organisation 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.”
With the deal, Tapestry is set to become one of the largest U.S. fashion companies, surpassing VF Corp. with revenues of USD 11.6 billion last year, PVH Corp. with USD 9 billion and Ralph Lauren Corp. with USD 6.4 billion.
“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,” said John Idol, chairman and chief executive officer of Capri Holdings Limited.
“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.”