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

US retail giant&nbsp;Michael Kors is set to buy Jimmy Choo, which was put up on sale in April. The deal is worth $1.2 billion.<a href="http://www.wionews.com/business-economy/british-luxury-shoe-brand-jimmy-choo-put-up-on-sale-14890"> Jimmy Choo had put itself up for sale after its major shareholder JAB </a>decided to focus on consumer goods. &nbsp;

The British firm is a renowned brand for shoes, handbags and other accessories. It was co-founded by Malaysian shoemaker Jimmy Choo and Tamara Mellon in 1996. The brand became a big hit&nbsp;among musicians, actresses and royalty. The <a href="http://www.wionews.com/photos/the-secret-life-of-diana-queen-of-hearts-378">brand&nbsp;was made famous by Princess Diana</a>. It was&nbsp;also embraced by singer Beyonce and Oscar winning actress Emma Stone.&nbsp;

The luxury brand, however, was struggling with slow sales for some time.&nbsp;

JAB Holdings, the investment vehicle of Germany&#39;s billionaire Reimann family, backed the sale plan. JAB has been drifting away from the luxury sector which it considers &quot;non-core&quot;.

Michael Kors&nbsp;said the deal would benefit Jimmy Choo by increasing its sale to one billion. It added that the brand will have greater product diversification by expanding into the men&#39;s luxury footwear category. It will also benefit from the greater exposure to the global market. Michael Kors is eyeing the&nbsp;fast growing Asian market.&nbsp;

Michael Kors, once a very popular brand in affordable luxury and handbags, has been struggling due to declining sales. To overcome this it has expanded into dresses and menswear and invested in its online business.&nbsp;

The firm is not going to alter the existing Jimmy Choo business, it said. Jimmy Choo will continue to work with the existing management team.&nbsp;

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US retail giant Michael Kors is set to buy Jimmy Choo for $1.2 billion

US retail giant Michael Kors is set to buy Jimmy Choo, which was put up on sale in April. The deal is worth $1.2 billion. Jimmy Choo had put itself up for sale after its major shareholder JAB decided to focus on consumer goods. The British firm is a renowned brand for shoes, handbags and other accessories. It was co-founded by Malaysian shoemaker Jimmy Choo and Tamara Mellon in 1996. The brand became a big hit among musicians, actresses and royalty. The brand was made famous by Princess Diana. It was also embraced by singer Beyonce and Oscar winning actress Emma Stone. The luxury brand, however, was struggling with slow sales for some time. JAB Holdings, the investment vehicle of Germany's billionaire Reimann family, backed the sale plan. JAB has been drifting away from the luxury sector which it considers "non-core". Michael Kors said the deal would benefit Jimmy Choo by increasing its sale to one billion. It added that the brand will have greater product diversification by expanding into the men's luxury footwear category. It will also benefit from the greater exposure to the global market. Michael Kors is eyeing the fast growing Asian market. Michael Kors, once a very popular brand in affordable luxury and handbags, has been struggling due to declining sales. To overcome this it has expanded into dresses and menswear and invested in its online business. The firm is not going to alter the existing Jimmy Choo business, it said. Jimmy Choo will continue to work with the existing management team.

Michael Kors to buy British luxury brand Jimmy Choo

British luxury retailer Jimmy Choo has put itself up for sale to try to maximise shareholder value as majority investor JAB increases its focus on consumer goods.

Jimmy Choo, famous for its stiletto shoes and accessories, has discussed its plans with 68 per cent shareholder JAB, which supports the process as part of a move away from a luxury sector it now considers &quot;non-core&quot;.

Jimmy Choo shares hit a record high, valuing the business at around $921 million.

Shares in Jimmy Choo, which floated on the London Stock Exchange at 140 pence in 2014, had increased 35 per cent over the last year prior to Monday&#39;s announcement. They rose as much as 11.3 per cent today, up 9.5 per cent at 185 pence.

&quot;What remains to be seen is whether growing interest from Asia and the Middle-East for luxury UK brands, will see Jimmy Choo receiving offers from foreign buyers searching for well-known British brands,&quot; said Jonathan Buxton, partner and head of consumer at Cavendish Corporate Finance.

Last month Jimmy Choo reported a 15.7 per cent rise in annual core earnings to 59 million pounds, on revenue up 14.5 per cent.

JAB Luxury also said on Monday it was reviewing its ownership of Bally International, the Swiss luxury footwear and accessories company, clearing the way for a possible sale of that business too.

JAB Holdings, the investment vehicle of Germany&#39;s billionaire Reimann family, has been building up its coffee and food chains and agreed this month to buy bakery group Panera Bread for $7.2 billion.

JAB&#39;s luxury portfolio also includes British jacket brand Belstaff which could now be surplus to requirements. It indicated that it intended to retain its investment in beauty products maker Coty.

&quot;JAB has, therefore, made the strategic decision to focus on its successful core businesses of consumer goods, including Coty Inc,&quot; it said, adding that it expects the review to complete in the second half of 2017.

Jimmy Choo said Britain&#39;s takeover panel has agreed that any talks with third parties can be conducted within the context of a &quot;formal sale process&quot;. That enables talks with interested parties to take place on a confidential basis.

The firm said it is currently not in receipt of any approaches. The sale process will be run by BofA Merrill Lynch and Citigroup.

(Reuters)

Jimmy Choo has discussed plans with 68 per cent shareholder JAB, which supports the process as part of a move away from luxury sector

British luxury retailer Jimmy Choo has put itself up for sale to try to maximise shareholder value as majority investor JAB increases its focus on consumer goods. Jimmy Choo, famous for its stiletto shoes and accessories, has discussed its plans with 68 per cent shareholder JAB, which supports the process as part of a move away from a luxury sector it now considers "non-core". Jimmy Choo shares hit a record high, valuing the business at around $921 million. Shares in Jimmy Choo, which floated on the London Stock Exchange at 140 pence in 2014, had increased 35 per cent over the last year prior to Monday's announcement. They rose as much as 11.3 per cent today, up 9.5 per cent at 185 pence. "What remains to be seen is whether growing interest from Asia and the Middle-East for luxury UK brands, will see Jimmy Choo receiving offers from foreign buyers searching for well-known British brands," said Jonathan Buxton, partner and head of consumer at Cavendish Corporate Finance. Last month Jimmy Choo reported a 15.7 per cent rise in annual core earnings to 59 million pounds, on revenue up 14.5 per cent. JAB Luxury also said on Monday it was reviewing its ownership of Bally International, the Swiss luxury footwear and accessories company, clearing the way for a possible sale of that business too. JAB Holdings, the investment vehicle of Germany's billionaire Reimann family, has been building up its coffee and food chains and agreed this month to buy bakery group Panera Bread for $7.2 billion. JAB's luxury portfolio also includes British jacket brand Belstaff which could now be surplus to requirements. It indicated that it intended to retain its investment in beauty products maker Coty. "JAB has, therefore, made the strategic decision to focus on its successful core businesses of consumer goods, including Coty Inc," it said, adding that it expects the review to complete in the second half of 2017. Jimmy Choo said Britain's takeover panel has agreed that any talks with third parties can be conducted within the context of a "formal sale process". That enables talks with interested parties to take place on a confidential basis. The firm said it is currently not in receipt of any approaches. The sale process will be run by BofA Merrill Lynch and Citigroup. (Reuters)

British luxury shoe brand Jimmy Choo put up on sale

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

Michael Kors to buy British luxury brand Jimmy Choo

British luxury shoe brand Jimmy Choo put up on sale