Tapestry Inc., owner of Coach, acquired Capri Holdings in $8.5 billion deal. The announcement about the merger was made on Thursday, August 10th.
Capri Holdings owns fashion houses Versace, Jimmy Choo, and Michael Kors.
Tapestry is already home to Kate Spade New York, and Stuart Weitzman.
Joanne Crevoiserat, CEO of Tapestry, took to her LinkedIn to say, “These distinctive brands are recognized worldwide for their commitment to glamorous style and craftsmanship.”
She continued, “By uniting our six powerful, complementary and differentiated brands, we will create a new, powerful house of global iconic luxury and fashion brands.”
When comparing this to another global luxury entity like LVMH, it will be interesting to see what the rest of this year would look like regarding sales.
The merger will make Tapestry the fourth-largest luxury company globally.
Crevoiserat believes that when the merger is complete, “Today marks a new era in the luxury and fashion world. I am inspired by what we will create together.”
A CBS News article predicted that despite the merger, there would be a downward sales trend when this is to happen.
However, it’s too soon to tell because this deal will probably be closed next year. Plus, Capri’s shareholders still need to approve the merger.