Versace Has Been Sold for 8.5 Billion Dollars
On the 10th of August, Capri Holdings Limited, a group of companies encompassing Versace, Jimmy Choo, and Michael Kors, officially announced its acquisition by Tapestry, Inc. (NYSE: TPR), a home to iconic accessories and lifestyle brands including Coach, Kate Spade, and Stuart Weitzman, as stated on the company's website. Under the terms of the deal, shareholders of Capri Holdings will receive $57.00 per share, with the overall contract value estimated at approximately $8.5 billion (£6.7 billion).
Joanne Crevoiserat, the CEO of Tapestry, stated that this deal will help the group expand its presence across more countries worldwide, creating a new powerful global luxury house. According to analysts and fashion experts, this move positions them to compete with the major European fashion industry giants, such as the France-based LVMH (Louis Vuitton, Givenchy, Christian Dior, and Marc Jacobs) and Kering (Gucci, Yves Saint Laurent, and Balenciaga).
"It's creating a major American fashion conglomerate especially in the premium fashion space," said Louise Deglise-Favre, apparel analyst at the analytics company GlobalData, told the BBC.
John D. Idol, Chairman and Chief Executive Officer of Capri Holdings Limited, said:
“Today’s announcement marks a major milestone for Capri. It is a testament to all that our teams have achieved in building Versace, Jimmy Choo, and Michael Kors into the iconic and powerful luxury fashion houses they are today. We are confident this combination will deliver immediate value to our shareholders. 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.”
It's worth noting that this transaction marks the second time in the last five years that Versace has changed ownership. In 2018, Michael Kors acquired this fashionable Italian brand for $2 billion from the Versace family members who had owned it for several decades.