An American fashion mega deal was announced today, August 10, in which Tapestry, the parent company of Coach, Kate Spade and Stuart Weitzman, will acquire Capri Holdings, home to Michael Kors, Jimmy Choo and Versace.

The purchase price is $8.5 billion and is not subject to any financial conditions. Tapestry has secured $8 billion from the Bank of America and Morgan Stanley to finance the deal, which will not close until 2024.

Capri, which has a market cap of just over $4 billion, reported revenues of $5.62 billion in fiscal 2023, down 0.7 per cent on the previous year’s record $5.65 billion. This performance is very subpar in the high-end luxury market, which has had a strong rebound in a post-COVID luxury retail landscape.