Coach owner to buy Michael Kors parent company in €7.8bn deal

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The combined businesses will be the fourth-largest luxury company in the world with a market share of around 5.1 per cent

Tapestry, the owner of brands including Coach and Kate Spade, agreed to acquire Michael Kors’ parent Capri Holdings in an $8.5 billion deal that shows the wave of consolidation in the luxury-goods sector is far from finished.

New York-based Tapestry is paying $57 a share in cash, according to a statement Thursday, a 65 per cent premium over Capri’s last closing price. The $8.5 billion enterprise value includes $1.7 billion in net debt. The transaction is expected to close in 2024, subject to approval by regulators and Capri shareholders.

, according to GlobalData analyst Neil Saunders. In the Americas, it will be the second-largest player behind LVMH, he added. By adding Versace to its brands, the acquisition gives Tapestry its first direct access to a European luxury marque. Capri bought Versace in 2018 and has focused on increasing the brand’s sale of handbags and other accessories, successfully boosting revenue.

 

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Coach owner to buy Michael Kors parent company in €7.8bn dealThe combined businesses will be the fourth-largest luxury company in the world with a market share of around 5.1 per cent
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