Market Commentary

Tapestry Acquires Michael Kors, Versace Owner Capri for $8.5B

Huzaifa Waseem
6 Feb 2024 · 1 minute read

Tapestry (TPR:US), a well-known house of iconic accessories and lifestyle brands including Coach, Kate Spade, and Stuart Weitzman, announced today that it has agreed to buy Capri Holdings (CPRI:US).

Capri shareholders will receive $57 per share in cash, amounting to a total enterprise value of approximately $8.5 billion. This way, Tapestry will now expand its portfolio by adding the globally respected Versace, Jimmy Choo, and Michael Kors brands through the acquisition of Capri Holdings.

The companies believe that this deal brings together six highly complementary brands with a worldwide presence, allowing for strong growth opportunities. The combined company generated global annual sales of over $12 billion and has a presence in more than 75 countries. Additionally, it achieved nearly $2 billion in adjusted operating profit in the previous fiscal year.

Joanne Crevoiserat, Chief Executive Officer of Tapestry, said, “Tapestry is an organization with a passion for building enduring brands through superior design and craftsmanship and an unwavering focus on our customers. Importantly, we’ve created a dynamic, data-driven consumer engagement platform that has fueled our success, fostering innovation, agility, and strong financial results.”

Moreover, Tapestry’s Board of Directors approved a 17% increase to its quarterly dividend per share, resulting in the expected payout of $1.40 per share.

While Capri shares rose 57% on the news, Tapestry stock fell nearly 7%

The news comes 3 months after Congressman Michael McCaul was selling TPR shares on May 12, when the stock closed at $41.18. In the same month, Rep. Ro Khanna sold some Capri shares.