Michael Kors owner Capri will be bought by Coach parent Tapestry in an $8.5 billion deal, the companies said on 10 August, creating a top U.S. fashion house that can better compete with larger European rivals in the global luxury market.
Tapestry will pay $57 per share in cash, representing a premium of nearly 65%. Capri’s shares were trading at $51.83 in premarket trading.
The deal would bring Tapestry’s brands, which also includes Kate Spade, together with Capri’s Jimmy Choo and Versace labels under one roof.
The combination could also provide some heft to the companies when the U.S. retail industry is battling weaker domestic demand as sticky inflation crimps consumer spending and an uneven recovery in key market China.
