BY Fraser Tennant
In a deal that establishes a powerful global house of iconic luxury and fashion brands, multinational luxury fashion holding company Tapestry, Inc. is to acquire fellow luxury fashion company Capri Holdings.
Under the terms of the definitive agreement, which is expected to close by the end of 2024, Capri shareholders will receive $57 per share in cash for a total enterprise value of approximately $8.5bn.
The acquisition brings together six highly complementary brands with global reach – Coach, Kate Spade, Stuart Weitzman, Versace, Jimmy Choo and Michael Kors – powered by Tapestry’s data-rich customer engagement platform and diversified, direct-to-consumer operating model.
The boards of directors of Tapestry and Capri have unanimously approved the transaction, subject to approval by Capri shareholders, as well as the receipt of required regulatory approvals, and other customary closing conditions.
“We are excited to announce the acquisition of Capri Holdings – uniting six iconic brands and exceptional global teams,” said Joanne Crevoiserat, chief executive of Tapestry. “Tapestry is an organisation with a passion for building enduring brands through superior design and craftsmanship and an unwavering focus on our customers.
To that end, the acquisition of Capri builds on Tapestry’s core tenets as consumer-centric brand-builders and disciplined operators, accelerating its strategic and financial growth agenda.
“We are confident this combination will deliver immediate value to our shareholders,” said John D. Idol, chairman and chief executive of Capri. “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.”
The combined company is also well-positioned to advance a comprehensive and impactful environmental, social and governance (ESG) strategy focused on a shared mission to drive progress toward a more sustainable, equitable and inclusive future.
Ms Crevoiserat concluded: “This combination of iconic brands 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.”
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