Tapestry, the fashion powerhouse known for Coach and Kate Spade, is teaming up with Capri Holdings in an exciting $8.5 billion deal announced on Thursday. This move will create a major American fashion player, ready to take on the luxury market. Think of it like joining forces between Tapestry’s Coach, Kate Spade, and Stuart Weitzman, with Capri’s Versace, Jimmy Choo, and Michael Kors.
The perfect match
By coming together, they're aiming to reach more people all over the world and really shine in the luxury world. The big boss at Tapestry, Joanne Crevoiserat, explained that this mix brings "six iconic brands" from over 75 countries, making more than $12 billion in sales every year.
In a TV chat, Crevoiserat told everyone that this new partnership will let Tapestry connect with a wider range of customers – from young shoppers who love Michael Kors to the fancy fans of Versace and Jimmy Choo. The stock market had some fun too: Capri’s shares jumped 56% while Tapestry's shares dipped about 12%. It’s like a rollercoaster of excitement for both sides!
Better days are coming
This deal comes at a time when both Tapestry and Capri saw slower business in North America. They noticed folks being a bit more careful with their cash. But Crevoiserat said this partnership isn't just about what's happening now – it’s part of their long-term plan to rock the fashion world and keep up with changing trends and the global economy's twists and turns. Capri, especially, wasn't having the best time with its sales. It had to lower its expectations and sales weren’t so hot for Michael Kors, Versace, and Jimmy Choo, especially in big boutiques. But now, they’re looking ahead to better days.
Both sides are super excited. Crevoiserat said they're all set to use their strengths to make even more cool brands shine. John Idol, the big chief at Capri, thinks this new adventure will bring lots of good things to the company and its hard working folks around the world. Everyone agreed on this big plan, and shareholders will get $57 for each share they have. That’s way more than what Capri’s shares usually go for! They’re hoping to get everything done and dusted by 2024. And money-wise, they’re getting a little help from Bank of America and Morgan Stanley. Some of that cash will help Capri with its debts.
So, there you have it – two style giants coming together to make the fashion world even more fabulous!
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