Tapestry, the parent company of Coach, will acquire Capri Holdings, owner of the Michael Kors and Versace brands, in an agreement of 8,500 million dollars (7,700 million euros), the two American groups announced on Thursday, thus creating an important house of fashion more capable of competing. with luxury European competitors.
US players in the luxury industry have always lagged behind their European competitors, such as world leader LVMH, which counts Louis Vuitton, Dior and Tiffany among its 75 brands. The deal could give both companies a new boost as the US retail sector faces weaker domestic demand due to inflation and an uneven recovery in the Chinese market.
Against Kering and LVMH
Tapestry, then known as Coach Inc, bought handbag brand Kate Spade in 2017 for $2.4 billion. That same year, Capri, formerly known as Michael Kors, acquired British shoe brand Jimmy Choo for $1.2 billion. A year later, it fell to the Italian brand Versace to fall into his hands for 2,200 million dollars.
The Capri acquisition could kick off a resumption of operations in US luxury, as major European groups continue to expand their portfolio by snapping up high-end brands. Last month, Kering said he would take a 30% stake in the Italian brand Valentino. LVMH completed the acquisition of Tiffany jewelry for $15.8 billion in early 2021.
Source: BFM TV
