: Coach parent Tapestry to acquire Michael Kors parent Capri in cash deal valued at $8.5 billion

Fashion company Tapestry Inc. TPR, parent to Coach and Kate Space, said Thursday it has reached an agreement to acquire Capri Holdings Ltd. CPRI, the parent company of Michael Kors, Jimmy Choo and Versace, in an all-cash deal valued at $8.5 billion. Under the terms of the board-approved deal, Tapestry will pay $57 per Capri share, equal to a premium of about 59% over the 30-day volume weighted average price ending Wednesday. The deal is expected to immediately boost Tapestry’s adjusted per-share earnings and generate significant cash flow. The deal was first reported by the Wall Street Journal late Wednesday. “The combination of Coach, Kate Spade, and Stuart Weitzman together with Versace, Jimmy Choo, and Michael Kors creates a new powerful global luxury house, unlocking a unique opportunity to drive enhanced value for our consumers, employees, communities, and shareholders around the world,” Tapestry CEO Joanne Crevoiserat said in a statement. The deal is expected to close in calendar year 2024. Capri shares soared 58% premarket on the news.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.