The US 8.5 Billion dollar deal is a strategic move by Tapestry to create a “new powerful global luxury house”.When it comes to the pantheon of luxury conglomerates, Kering and LVMH reign supreme as they each hold a sizeable portion of the luxury fashion and goods market.
There is a clear distinction between Tapestry which holds more American lifestyle-led brands that are youthful and modern as opposed LVMH’s European counterparts that hold internationally renowned powerhouses consisting of distinguished fashion maisons the likes of Louis Vuitton and Dior or Kering’s Gucci and Saint Laurent. Among other major factors, scale is part of Tapestry’s new strategy.
“The combination of Coach, Kate Spade, and Stuart Weitzman together with Versace, Jimmy Choo, and Michael Kors creates a new powerful global luxury house,” Tapestry CEO Joanne Crevoiserat said in a statement while Capri Chairman and CEO John Idol commented “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.
According to the terms of the all-cash agreement, Tapestry will pay Capri shareholders US 57 dollars per share. According to Reuters, the deal is expected to close in 2024 and is estimated to generate savings of more than US 200 Million dollars within three years of closing.2023 continues to be the year of power moves in the luxury market as Kering bought a 30 percent stake in Valentino for 1.7 Billion Euros in July while LVMH is set to sponsor the 2024 Paris Olympics.
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: FoxBusiness - 🏆 458. / 53 Read more »