Another blockbuster deal in the world of fashion.
Tapestry shocked Wall Street on Thursday by announcing it will spend $8.5 billion — or $57 a share — to buy rival Capri Holdings for a total enterprise value of $8.5 billion. The transaction will see Tapestry — the steward of Coach, Kate Spade and Stuart Weitzman — gain control of Versace, Michael Kors and Jimmy Choo.
Capri shares surged 59% to $54.82 in premarket trading. Tapestry shares fell 4% to $39.54.
Here are several high level points from the term sheet:
The purchase price marks a 39% premium to Capri’s closing price on Wednesday.
$200 million in cost synergies expected by three years after deal closes.
17% quarterly dividend approved despite the transaction.
Deal expected to close in 2024.
Deal will he funded through a mix of new debt and cash on the balance sheet.
The transaction marks the next chapter for Tapestry CEO Joanne Crevoiserat.
Crevoiserat joined Tapestry in 2019 as chief financial officer after successful stints…
2023-08-10 06:13:01
Source from finance.yahoo.com