Capri Holdings

History

2023: Tapestry acquires Capri Holdings

On August 10, 2023, the American corporation, Tapestry which owns the Coach, Kate Spade and Stuart Weitzman brands, announced the acquisition of Capri Holdings, the owner of Michael Kors, Jimmy Choo and Versace fashion houses. The transaction amount is approximately $8.5 billion.

The transaction will be fully implemented at the expense of funds. Tapestry will pay $57 for each Capri share, which is 65% higher than the value of the holding's securities at the close of trading on August 9, 2023. The boards of directors of both companies unanimously approved the merger. It is planned to complete the consolidation of assets in 2024 after obtaining the necessary permits from regulators. The transaction is not subject to any financing conditions.

Tapestry to pay $57 for each Capri share

We are confident that this combination will immediately benefit our shareholders. It will also provide new opportunities for our employees around the world as Capri becomes part of a larger and more diversified company, "said Capri CEO John Idol.

The structure being formed will bring together six fashion brands. It will be able to better compete with the leading European companies in the relevant area - LVMH (Louis Vuitton, Christian Dior, Givenchy and Bulgari) and Kering (owned by Gucci, Saint Laurent and Balenciaga). The combined company will gain a presence in more than 75 countries around the world.

After the merger is completed, the new company will become the world's fourth-largest luxury market player with a combined share of about 5.1%, according to estimates from research firm GlobalData PLC. In the Americas, the company will be the second-largest player after LVMH with a combined share of roughly 6%. At the end of 2022, the total sales of two American holdings amounted to about $12 billion.^[1]

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