Kate Spade owner Tapestry agrees $8.5bn deal for Jimmy Choo parent Capri

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Tapestry, owner of fashion brands Coach, Kate Spade and Stuart Weitzman, has agreed to buy Capri Holdings, home to luxury labels Versace, Jimmy Choo and Michael Kors, for about $8.5bn.

New York-based Tapestry said on Thursday the deal would bring together “six highly complementary brands with global reach”, with combined revenues of more than $12bn in more than 75 countries and nearly $2bn in adjusted operating profit in the prior fiscal year.

Tapestry’s chief financial officer Scott Roe said the deal would deliver “more than $200mn in expected run-rate cost synergies within three years of deal closing”.

Tapestry said the deal would build its portfolio in the “$200bn+ global luxury market for handbags, accessories, footwear and apparel”.

This is a developing story . . .