Tapestry, the US owner of lifestyle brands including Coach and Kate Spade, said Thursday it will acquire Michael Kors’ parent company Capri for US$8.5 billion, creating a new global fashion giant to compete with European powerhouses.
The unified company will also include Tapestry’s Stuart Weitzman and Capri’s Jimmy Choo – both prominent shoe brands – as well as Versace, a go-to name for Hollywood A-listers looking to make a splash on red carpets.
That will give Tapestry an upscale portfolio with multiple brands focused on shoes and handbags, as well as a strengthened apparel offering with Versace and Kors, also a celeb favourite.
The merger “creates a new powerful global luxury house”, said Tapestry chief executive Joanne Crevoiserat.
The all-cash takeover aims to boost sales by combining customer data streams, broadening geographic reach and achieving some US$200 million in annual cost savings within three years of the deal closing, a joint press release said.
Tapestry, the luxury fashion company that owns Coach and Kate Spade, has bought Capri Holdings, the parent of Versace and Michael Kors. Photo: AFP
Executives highlighted Tapestry’s superior direct-to-consumer business as an area of potential growth for Capri, which garners more sales in Europe compared with Tapestry, which is stronger in Asia.
