An $8.5bn deal is bringing the Jimmy Choo and Kate Spade brands under one roof.
Tapestry Inc (NYSE:TPR), the parent company of Kate Spade and Coach, has announced its intention to acquire Capri Holdings.
This acquisition will form a formidable US fashion entity, although it will still be smaller than some European rivals.
The merger will unite six renowned brands: Tapestry's Coach, Kate Spade, Stuart Weitzman, and Capri's Versace, Jimmy Choo, and Michael Kors.
Following the announcement, Capri's stock price soared by 58% in pre-market trading.
Tapestry's CEO, Joanne Crevoiserat, emphasized the company's robust, data-driven consumer engagement platform as a key driver of their success.
John Idol, Capri’s CEO, believes the merger will enhance the company's global footprint and resources.
Capri’s shareholders are set to receive $57 per share, reflecting a 59% premium on Capri’s recent average value.
At 7.57 am, the shares were up $19.90 at $54.52.