Tapestry Coach Store

Tapestry Capri Merger Gets EU, Japan Approval

The Coach Owner’s Acquisition of the Michael Kors and Versace Owner Nears Completion, but Still Awaits US Approval

Tapestry’s $8.5 billion deal to buy Capri Holdings has obtained regulatory approval from both the European Union and Japan, according to statements released by the involved parties on Monday.

Upon completion, the merger will consolidate prominent luxury brands including Tapestry’s Coach, Kate Spade, Stuart Weitzman, as well as Capri’s Michael Kors, Jimmy Choo, and Versace, under a single entity. However, final clearance from the United States is still pending.

Following the announcement of the merger, the US Federal Trade Commission initiated further inquiries into the transaction in November, several months subsequent to its initial unveiling.

The potential amalgamation of the two entities is viewed as a strategic move for Tapestry, aimed at enhancing its competitive stance against Paris-listed LVMH within the European luxury market. This comes amidst fluctuating demand for high-end handbags and accessories in the United States.

The companies anticipate the deal to be finalized in 2024, with immediate positive impact on Tapestry’s adjusted profits, as previously indicated in statements made last year.