Tapestry, the American luxury company that controls lifestyle brands such as Coach, Kate Spade and Stuart Weitzman, has signed a agreement definitive for the acquisition of Capri Holdings, the global fashion group that owns Versace, Jimmy Choo and Michael Kors, for $8,5 billion. Capri Holdings shareholders will receive $57 in cash per share.
12 billion in revenue for the two entities combined
Acquisition unites six fashion brands on a global scale, supported by Tapestry's data-driven customer engagement platform and direct-to-consumer, diversified operating model.
La new entity resulting from the merger of the two groups has a higher turnover to $12 billion and operates in over 75 countries. In 2022, it generated an adjusted operating profit of nearly $2 billion.
“We are thrilled to announce the acquisition of Capri Holdings, bringing together six iconic brands and outstanding global teams. Tapestry is an organization with a passion for creating lasting brands through superior design and craftsmanship and an unwavering commitment to our customers. From this position of strength, we are poised 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 powerful new global luxury home, unlocking a unique opportunity to generate improved value for our consumers, employees, communities and shareholders around the world,” he commented. Joanne Crevoiserat, Chief Executive Officer of Tapestry, Inc.
"L 'acquisition of Capri Holdings accelerates our strategic agenda and represents a significant opportunity to create value. This combination is instantly accretive on an adjusted basis and enhances Tapestry's overall shareholder return. This includes beyond $200 million in cost synergies expected within three years of closing the deal. In addition, our diversified, strong and consistent cash flows will allow us to continue investing in our business and rapidly repay debt, consistent with our commitment to maintaining an investment grade rating while returning capital to shareholders, including 17% increase in dividend per share announced today. Overall, we are disciplined traders and capital allocators with a tireless drive to deliver meaningful shareholder value.” he has declared Scott Roe, Chief Financial Officer and Chief Operating Officer of Tapestry, Inc..
