Capri Holdings shares surged after Michael Kors and Versace luxury brands agreed to $8.5 billion takeover by Tapestry Inc.
Six luxury brands, including Kate Spade, Jimmy Choo, and Stuart Weitzman, will be merged, generating $12 billion in annual revenues and nearly $2 billion in operating profit.
Tapestry CEO Joanne Crevoiseerat announced the acquisition of Capri Holdings, which combines six iconic brands and global teams. The deal creates a powerful global luxury house, driving enhanced value for consumers, employees, communities, and shareholders worldwide. Capri Holdings shares rose 55.7% after the deal was confirmed, while Tapestry shares fell 16.22%, putting the stock in negative territory for the year.
Capri CEO John Idol believes the combination will deliver immediate value to shareholders, accelerating global reach and preserving brand DNA by combining resources with Tapestry.
