Tapestry acquires Capri Holdings for $8.5B, consolidating luxury fashion brands to compete with European rivals

Tapestry, parent of Coach and Kate Spade, is acquiring Capri Holdings, parent of Versace, Jimmy Choo, and Michael Kors, for $8.5 billion.
The deal aims to create a US fashion giant that can better compete with luxury conglomerates LVMH and Kering.
The merger gives Tapestry greater global reach and exposure to new demographics to offset slowing US sales.
Capri shares jumped over 50% while Tapestry shares fell on news of the cash acquisition.
Analysts say the deal could revive M&A activity in the US luxury market, but past brand rollups have faced challenges.