Coach Buys Versace Owner Capri For $8.5-B

Tapestry, the parent company of luxury handbag and accessories retailer Coach, is buying Capri, the owner of fashion brands including Michael Kors, Versace and Jimmy Choo, Michelle Chapman reported for the Associated Press (AP).

Photo Insert: Big fashion has been getting even bigger through a spate of acquisitions as U.S. players seek more sway in Europe.

Big fashion has been getting even bigger through a spate of acquisitions as U.S. players seek more sway in Europe.

The approximately $8.5 billion (7.7 billion euro) deal puts Tapestry in a better position to do just that in going-to-toe with rivals like LVMH and Kering.

Tapestry Inc., whose brands also include Kate Spade and Stuart Weitzman, said Thursday that the combined company had global annual sales of more than $12 billion (10.9 billion euro) and has a presence in more than 75 countries.

Tapestry has a market cap of nearly $10 billion (9.1 billion euro), while Capri’s is around $4 billion (3.6 billion euro).

“The combination of Coach, Kate Spade, and Stuart Weitzman together with Versace, Jimmy Choo, and Michael Kors creates a new powerful global luxury house,” Tapestry CEO Joanne Crevoiserat said.

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