Coach Owner Tapestry Aims to Create ‘Powerful Global Luxury House’ with $8.5B Acquisition of Versace, Michael Kors Brands

Coach owner Tapestry has acquired Capri, which owns Versace among other brands.

Tapestry, the parent company of brands including Coach, Kate Spade and Stuart Weitzman, will acquire global fashion luxury group Capri Holdings, owner of the Versace, Jimmy Choo and Michael Kors brands. The transaction, which is valued at approximately $8.5 billion, has been unanimously approved by the boards of both Tapestry and Capri and is set to close in 2024.

In bringing together the six complementary brands, Tapestry hopes to build “a new powerful global luxury house” with a presence in more than 75 countries, said Joanne Crevoiserat, CEO of Tapestry in a statement. Combined, the two companies generated global annual sales of more than $12 billion in the prior fiscal year and achieved nearly $2 billion in adjusted operating profit.

The addition of Capri’s brands will expand Tapestry’s reach in the global luxury market as well as broaden the company’s product offerings, particularly in the footwear and ready-to-wear categories. Tapestry aims to build on the prominence of the Capri brands by fully integrating them into its direct-to-consumer operating model, with the goal of expanding Capri’s DTC penetration. The companies also expect to see more than $200 million in run-rate cost synergies within three years post-closing. The combined company will boast a workforce of more than 33,000 employees around the world.

“Tapestry is an organization with a passion for building enduring brands through superior design and craftsmanship and an unwavering focus on our customers,” noted Crevoiserat. “Importantly, we’ve created a dynamic, data-driven consumer engagement platform that has fueled our success, fostering innovation, agility and strong financial results. From this position of strength, we are ready to leverage our competitive advantages across a broader portfolio of brands.”

“We are confident this combination will deliver immediate value to our shareholders,” said John Idol, Chairman and CEO of Capri Holdings in a statement. “It will also provide new opportunities for our dedicated employees around the world as Capri becomes part of a larger and more diversified company. By joining with Tapestry, we will have greater resources and capabilities to accelerate the expansion of our global reach while preserving the unique DNA of our brands.”