Coach parent Tapestry has acquired competitor Capri Holdings, formerly known as Michael Kors Holdings, for £6.7bn ($8.5bn) as it looks to compete with Europe’s luxury heavyweights.
The deal will see Jimmy Choo, Michael Kors and Versace added to the US fashion giant’s portfolio, which includes Kate Spade and Stuart Weitzman.
Capri shareholders will receive £44.40 ($57) per share in cash, valuing the firm at £6.7bn.
Chief executive and chairman John Idol said: “Today’s announcement marks a major milestone for Capri.
“It is a testament to all that our teams have achieved in building Versace, Jimmy Choo, and Michael Kors into the iconic and powerful luxury fashion houses they are today.”
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“We are confident this combination will deliver immediate value to our shareholders. It will also provide new opportunities for our dedicated employees around the world as Capri becomes part of a larger and more diversified company,” he added.
According to Idol, the deal would provide greater resources and capabilities “to accelerate the expansion of [its] global reach”.
Tapestry, previously known as Coach Ink, acquired handbag maker Kate Spade for £1.8bn ($2.4bn) in 2017. In the same year, Capri bought British shoemaker Jimmy Choo for £939m ($1.2bn) before adding Versace to it portfolio for £1.7bn ($2.2bn) in 2018.
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