Fashion conglomerate and parent company of Coach and Kate Spade, Tapestry, is to acquire competitor Capri Holdings for $8.5 billion.

Although it won't be as big as its European rivals, the merger will produce an American fashion giant better equipped to compete in the luxury market. The acquisition will bring together six fashion brands: Tapestry's Coach, Kate Spade, Stuart Weitzman, Capri's Versace, Jimmy Choo, and Michael Kors.

According to Tapestry CEO Joanne Crevoiserat, the company will be larger and more scalable, giving it the ability to reach more customers worldwide and compete more effectively in the luxury market.

According to her, the merger brings together "six iconic brands" that operate in more than 75 countries and generate an annual revenue of over $12 billion.

In an interview with CNBC, she said the acquisition would enable Tapestry to reach more customers of all ages and income levels. Versace and Jimmy Choo attract wealthier clientele, whereas Michael Kors pulls younger and more diverse customers.

"It does increase our access to the luxury market and the higher-end consumer segments in luxury," Reuters quoted Crevoiserat as saying.

Early trading saw Capri shares rise by 56 per cent to a little under the $57 per share transaction price, while Tapestry shares dropped to about 12 per cent.

The transaction occurred when Tapestry and Capri were experiencing limited sales in North America. Both businesses mentioned that American consumers are becoming more frugal with their spending in their quarterly reports from May.

According to Crevoiserat, the acquisition timing will be determined by both firms' long-term plans rather than by the state of the market. However, she maintained that the bigger business would be better equipped to adapt to rapidly shifting consumer preferences and the ups and downs of a global economy.

The slow-down in sales has had an effect, particularly on Capri. As it decreased its prediction in late May, its shares fell to a 52-week low. The business reported decreased sales, notably at department shops, for its luxury brands Versace and Jimmy Choo and Michael Kors. At the time, John Idol, the company's CEO, stated that the company anticipated that softness would last into the summer.

In contrast, Tapestry improved its full-year outlook during the most recent reported quarter.

Tapestry has worked to enhance its brands and win over a younger demographic of customers. In contrast, Coach has partnered with well-known companies and personalities like Disney and Kirsten Dunst to appeal to Gen Z customers.

The coach also reduced the number of products it carries to concentrate on bestsellers while maintaining high price points by limiting markdowns. Kate Spade has started to follow a similar strategy.

Tapestry has also looked outside the US and pursued bigger sales in countries like China to spur growth.

CNBC quoted Crevoiserat: "We have developed a dynamic, data-driven consumer engagement platform that has fueled our success, fostering innovation, agility, and strong financial results."

According to Capri CEO Idol, the acquisition will give the business "greater resources and capabilities" to broaden its international clientele.

"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," said Idol added.

After the boards of both companies have unanimously approved the acquisition, the shareholders are to receive $57 per share and a 59 per cent premium on the 30-day volume average of Capri's value. The deal is expected to be finalized in 2024.

There are no financial requirements for the deal to be carried out. According to the companies, it will be financed using bridge financing from Bank of America and Morgan Stanley through senior notes, term loans, and cash, with some money going toward clearing Capri's outstanding debt.

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Fashion conglomerate and parent company of Coach and Kate Spade, Tapestry, is to acquire competitor Capri Holdings for $8.5 billion. Although it won't be as big as its European rivals, the merger will produce an American fashion giant better equipped to compete in the luxury market.

Fashion conglomerate and parent company of Coach and Kate Spade, Tapestry, is to acquire competitor Capri Holdings for $8.5 billion. Although it won't be as big as its European rivals, the merger will produce an American fashion giant better equipped to compete in the luxury market. The acquisition will bring together six fashion brands: Tapestry's Coach, Kate Spade, Stuart Weitzman, Capri's Versace, Jimmy Choo, and Michael Kors. According to Tapestry CEO Joanne Crevoiserat, the company will be larger and more scalable, giving it the ability to reach more customers worldwide and compete more effectively in the luxury market. According to her, the merger brings together "six iconic brands" that operate in more than 75 countries and generate an annual revenue of over $12 billion. In an interview with CNBC, she said the acquisition would enable Tapestry to reach more customers of all ages and income levels. Versace and Jimmy Choo attract wealthier clientele, whereas Michael Kors pulls younger and more diverse customers. "It does increase our access to the luxury market and the higher-end consumer segments in luxury," Reuters quoted Crevoiserat as saying. Early trading saw Capri shares rise by 56 per cent to a little under the $57 per share transaction price, while Tapestry shares dropped to about 12 per cent. The transaction occurred when Tapestry and Capri were experiencing limited sales in North America. Both businesses mentioned that American consumers are becoming more frugal with their spending in their quarterly reports from May. According to Crevoiserat, the acquisition timing will be determined by both firms' long-term plans rather than by the state of the market. However, she maintained that the bigger business would be better equipped to adapt to rapidly shifting consumer preferences and the ups and downs of a global economy. The slow-down in sales has had an effect, particularly on Capri. As it decreased its prediction in late May, its shares fell to a 52-week low. The business reported decreased sales, notably at department shops, for its luxury brands Versace and Jimmy Choo and Michael Kors. At the time, John Idol, the company's CEO, stated that the company anticipated that softness would last into the summer. In contrast, Tapestry improved its full-year outlook during the most recent reported quarter. Tapestry has worked to enhance its brands and win over a younger demographic of customers. In contrast, Coach has partnered with well-known companies and personalities like Disney and Kirsten Dunst to appeal to Gen Z customers. The coach also reduced the number of products it carries to concentrate on bestsellers while maintaining high price points by limiting markdowns. Kate Spade has started to follow a similar strategy. Tapestry has also looked outside the US and pursued bigger sales in countries like China to spur growth. CNBC quoted Crevoiserat: "We have developed a dynamic, data-driven consumer engagement platform that has fueled our success, fostering innovation, agility, and strong financial results." According to Capri CEO Idol, the acquisition will give the business "greater resources and capabilities" to broaden its international clientele. "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," said Idol added. After the boards of both companies have unanimously approved the acquisition, the shareholders are to receive $57 per share and a 59 per cent premium on the 30-day volume average of Capri's value. The deal is expected to be finalized in 2024. There are no financial requirements for the deal to be carried out. According to the companies, it will be financed using bridge financing from Bank of America and Morgan Stanley through senior notes, term loans, and cash, with some money going toward clearing Capri's outstanding debt. WATCH WION LIVE HERE

Fashion conglomerate Tapestry strikes $8.5 billion deal to acquire Capri Holdings

We have some big fashion news for you as luxury brand Michael Kors acquires Versace fully.&nbsp;According to the latest update on the news, Kors has taken the complete acquisition of the Italian brand Versace for $2.2 billion. &nbsp;&nbsp;

Not only this, but the brand has also changed its name and is now called Capri Holdings, as announced by its chairman and CEO, John D Idol. In the announcement, John said, “With the acquisition of Versace, we have now created one of the leading global fashion luxury groups in the world. Versace has long been recognized as one of the world's leading fashion luxury houses and is synonymous with Italian glamour and style. We are thrilled that the house of Versace is now part of the Capri Holdings family of luxury brands.”&nbsp;

The brand now expects to increase their annual revenue earned, after acquiring both Versace and Jimmy Choo. The expected raise could go up to $8 billion, according to the owners -- Kors is expected to generate a revenue of $5 billion, Jimmy Choo is expected to generate $1 billion and Versace $2 billion.&nbsp;

As for the name, they seem to have taken inspiration from the ultra glamorous and luxurious destination island, Capri.&nbsp;

After an eventful 2018 with #MeToo being spoken about in fashion labels, talks of inclusivity, gender-parity and addressing body shaming issues; the new year is expected to bring a positive change.&nbsp;

We have some big fashion news for you as luxury brand Michael Kors acquires Versace fully. According to the latest update on the news, Kors has taken the complete acquisition of the Italian brand Versace for $2.

We have some big fashion news for you as luxury brand Michael Kors acquires Versace fully. According to the latest update on the news, Kors has taken the complete acquisition of the Italian brand Versace for $2.2 billion. Not only this, but the brand has also changed its name and is now called Capri Holdings, as announced by its chairman and CEO, John D Idol. In the announcement, John said, “With the acquisition of Versace, we have now created one of the leading global fashion luxury groups in the world. Versace has long been recognized as one of the world's leading fashion luxury houses and is synonymous with Italian glamour and style. We are thrilled that the house of Versace is now part of the Capri Holdings family of luxury brands.” The brand now expects to increase their annual revenue earned, after acquiring both Versace and Jimmy Choo. The expected raise could go up to $8 billion, according to the owners -- Kors is expected to generate a revenue of $5 billion, Jimmy Choo is expected to generate $1 billion and Versace $2 billion. As for the name, they seem to have taken inspiration from the ultra glamorous and luxurious destination island, Capri. After an eventful 2018 with #MeToo being spoken about in fashion labels, talks of inclusivity, gender-parity and addressing body shaming issues; the new year is expected to bring a positive change.

Michael Kors changes name after complete acquisition of Versace for $2.2 billion 

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Fashion conglomerate Tapestry strikes $8.5 billion deal to acquire Capri Holdings

Michael Kors changes name after complete acquisition of Versace for $2.2 billion