Coach, Michael Kors and Versace want to create a global luxury giant

The new global luxury giant should see the light of day in 2024 with Coach, Kate Spade, Stuart Weitzman’s wedding to Michael Kors, Versace and Jimmy Choo, brands that legions of celebrities wear on the red carpet, announced in early August. .

Watch the parade

American group Tapestry (Coach, Kate Spade, Stuart Weitzman) announced the signing of a “final agreement” to acquire Capri, the parent company of Michael Kors, Versace and Jimmy Choo.

The new group will be proud of a very long list of artists and other people who choose its brands, such as Bella Hadid (ambassador of Michael Kors and Versace), Nicole Kidman, Taylor Swift, Angelina Jolie or even Heidi Klum. Lizzo, Olivia Cooke, Jennifer Lopez.

“The collaboration of Coach, Kate Spade and Stuart Weitzman with Versace, Jimmy Choo and Michael Kors creates a powerful and global new luxury home,” Joanne Crevoiser, head of Tapestry, was quoted in a statement.

According to GlobalData analyst Neil Saunders, the new group should rise to fourth place in the world of luxury goods with a market share of about 5.1% behind France’s LVMH, Kering and Chanel. Only in the Americas, it will be in second place (6%), significantly behind LVMH (21.4%). Its total income exceeds $12 billion.

The $8.5 billion deal is expected to close in 2024.

“American luxury companies have long been jealous of their European counterparts,” remarked Neil Saunders, noting that the “willingness to do the same” prompted Tapestry and Capri to merge several brands. “The acquisition of Tapestry by Capri is the next logical step in building a powerful global luxury home,” he said.

The two boards of directors have unanimously approved the merger, which in any event remains subject to approval from Capri’s shareholders and supervisory authorities.

John Idol, head of Capri, assured that by joining Tapestry, “we will have more resources and opportunities to accelerate our internationalization while maintaining the unique DNA of our brands.” “This is an important milestone for Capri,” he said.

The two companies are “very complementary” in terms of geographic distribution: another is present in Asia (Tapestry does 65% of its business in the Americas and 29% in Asia) and the other is more present in Europe (Capri makes 56 % in America). , 28% in Europe/Middle East and 16% in Asia).

“We can learn a lot from how they built their brands in Europe,” Crevoisera said on a conference call with analysts, adding that Michael Kors is a “strong brand” with a “younger, more diverse consumer base.”

The new facility will employ more than 33,000 people. “Scale and synergy make this a bargain,” TD Cowen analysts said in a statement titled “Eloquence of luxury (Tapestry) adds glamour (Capri) – a captivating combination.”