New York City — Tapestry (NYSE: TPR), owner of fashion brands Coach, Kate Spade and Stuart Weitzman, has agreed to acquire luxury fashion group Capri Holdings Limited (NYSE: CPRI) for $8.5 billion. Both companies are based in New York City.
Capri Holdings consists of Versace, Jimmy Choo and Michael Kors. The group spans a retail footprint of over 1,200 stores globally, including 223 Versace locations, 237 Jimmy Choo stores and 812 Michael Kors locations.
The all-cash transaction, which was unanimously approved by the board of directors at both Tapestry and Capri Holdings, is expected to close in 2024. Capri shareholders will receive $57 per share.
Combined, the companies generated $12 billion in global annual sales in 2022 and have a presence in over 75 countries.
“We are excited to announce the acquisition of Capri Holdings — uniting six iconic brands and exceptional global teams,” says Tapestry CEO Joanne Crevoiserat. “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.”
Tapestry has secured $8 billion in fully committed bridge financing from Bank of America and Morgan Stanley Senior Funding Inc. for the acquisition. Morgan Stanley & Co is also serving as Tapestry’s exclusive financial advisor in the transaction, and Latham & Watkins LLP is acting as legal advisor.
Barclays is acting as Capri’s financial advisor, and its legal advisor is Wachtell, Lipton, Rosen & Katz.
Prior to the acquisition, Tapestry’s global footprint included 1,443 stores. The company’s stock price closed at $41.24 per share on Wed., Aug. 9, up from $32.28 one year ago.
The stock price for Capri closed at $34.61 yesterday, down from $48.59 one year ago. As of this morning, the company’s stock price has risen to $54.15 following news of the acquisition.