Fashion company Tapestry Inc., parent to the Coach and Kate Spade brands, said Thursday it has reached an agreement to acquire Capri Holdings Ltd., the parent company of Michael Kors, Jimmy Choo and Versace, in an all-cash deal valued at $8.5 billion. The news was first reported by the Wall Street Journal late Wednesday.
Under the terms of the deal which has been approved by both boards, Tapestry will pay $57 per Capri share
CPRI,
-1.70%,
equal to a premium of about 59% over the 30-day volume weighted average price through Wednesday’s close. The deal is expected to immediately boost Tapestry’s
TPR,
-0.87%
adjusted per-share earnings and generate significant cash flow. The company expects to realize more than $200 million in run-rate cost synergies within three years of closing. The companies had combined revenue of more than $12 billion in the prior fiscal year and almost $2 billion in adjusted operating profit. “The combination of Coach, Kate Spade, and Stuart Weitzman together with Versace, Jimmy Choo, and Michael Kors creates a new powerful global luxury house, unlocking a unique opportunity to drive enhanced value for our consumers, employees, communities, and shareholders around the world,” Tapestry CEO Joanne Crevoiserat said in a statement. The deal is expected to close in calendar year 2024. Jefferies analysts said they view the deal as positive for Capri, “but are surprised Tapestry would want to acquire the company given existing bran …
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Under the terms of the deal which has been approved by both boards, Tapestry will pay $57 per Capri share
CPRI,
-1.70%,
equal to a premium of about 59% over the 30-day volume weighted average price through Wednesday’s close. The deal is expected to immediately boost Tapestry’s
TPR,
-0.87%
adjusted per-share earnings and generate significant cash flow. The company expects to realize more than $200 million in run-rate cost synergies within three years of closing. The companies had combined revenue of more than $12 billion in the prior fiscal year and almost $2 billion in adjusted operating profit. “The combination of Coach, Kate Spade, and Stuart Weitzman together with Versace, Jimmy Choo, and Michael Kors creates a new powerful global luxury house, unlocking a unique opportunity to drive enhanced value for our consumers, employees, communities, and shareholders around the world,” Tapestry CEO Joanne Crevoiserat said in a statement. The deal is expected to close in calendar year 2024. Jefferies analysts said they view the deal as positive for Capri, “but are surprised Tapestry would want to acquire the company given existing bran …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]