Tapestry Is Acquiring Capri Holdings, the Parent Company of Versace and Jimmy Choo, for $8.5B — Retail Bum

Tapestry has agreed to acquire Capri Holdings, the parent company of Versace, Jimmy Choo, and Michael Kors, for $8.5 billion.

The deal will bring together Capri’s portfolio of brands with those of Tapestry, including Coach, Kate Spade, and Stuart Weitzman. Once it closes, it will create a U.S. fashion giant, albeit significantly smaller than its European counterparts. For example, Gucci’s parent company, Kering, is valued at $72 billion, while LVMH, which has a portfolio of 75 brands, has a stunning $456 billion market cap.

Capri’s CEO, John Idol, noted that the acquisition will offer the company “greater resources and capabilities” and will help it expand its global reach.

“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,” Idol said.

The acquisition follows Tapestry’s continued efforts to build its brand and improve its appeal to younger Gen Z shoppers. Some of these efforts have seen a string of collaborations between Coach and popular brands such as Disney and celebrities such as Kirsten Dunst. In addition…