See what’s clicking on FoxBusiness.com.
The luxury fashion brand merger between Capri and Tapestry is officially closed, as the two companies announced Thursday that they will be successful. leave the assembly because it was possible for them to get regulatory approval.
The proposed $8.5 billion merger was first announced in August 2023 but has come under scrutiny Federal Trade Commission (FTC)who sued to block the deal earlier this year out of concern that it would destroy competition in the luxury bag and accessories space. In late October, a federal judge blocked the merger citing competition concerns raised by the proposed merger.
US District Judge Jennifer Rochon said that the companies’ defense of the agreement is based on the argument that bags are non-essential goods and sensitive to consumer preferences, which she said “ignores that bags are important to many women, not just to express their feelings. not in fashion but to help in their daily lives.”
Had the merger gone ahead, it would have included Tapestry’s brands Coach, Kate Spade and Stuart Weitzman and Capri’s Versace, Jimmy Choo and Michael Kors. Leaders of both companies have outlined their ways forward following the rejection of the merger.
FEDERAL JUDGE BLOCKS TEMPORARY MERGER BETWEEN TAPESTRY AND CAPRI
A sign marking the location of the Versace store on Aug. 10, 2023 in Chicago, Illinois. Tapestry, the luxury fashion company that owns Coach and Kate Spade, has bought Capri Holdings, the parent of Versace and Michael Kors. (Photo by Scott Olson/Getty Images / Getty Images)
Capri CEO John D. Idol said in a statement Thursday, “As we close the merger agreement, we are now focused on the future of Capri and our three veterans. luxury homes.”
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| CPRI | CAPRI HOLDINGS LTD. | 21.17 | +1.53 |
+7.79% |
| TPR | Company TAPESTRY INC. | 58.46 | +7.19 |
+ 14.02% |
“Looking at the performance of our company over the past 18 months, we have recently begun to implement a number of initiatives to return our luxury houses to our growth. Across Versace, Jimmy Choo and Michael Kors, we are focused on the desirability of the brand through exciting, compelling communication. product and an omnichannel consumer experience. Although our strategies are tailored to each brand, our main goals are the same,” added Idol.
FTC CHAIRMAN LINA KHAN DEFENDS INTEGRATION AND DISCOVERY OF CRACKDOWN
Pedestrians pass a Michael Kors store on Aug. 10, 2023 in Chicago, Illinois. Tapestry, the luxury fashion company that owns Coach and Kate Spade, has bought Capri Holdings, the parent of Versace and Michael Kors. (Photo by Scott Olson/Getty Images / Getty Images)
Tapestry CEO Joanne Crevoiserat said, “We’ve always had multiple avenues for growth and our decision today clarifies the strategy going forward. Building on our successful first quarter, we will move with speed and boldness to accelerate the growth of our organic business.”
“Tapestry remains in a strong position, with unique products, a dynamic platform, passionate teams, and strong cash flow. We have a great pipeline and are pleased to announce today an additional shareholder return plan, as we believe there is no better investment at this time than our stock,” Crevoiserat added.
Shares in Capri have lost nearly half their value since a judge blocked the merger last month.
Shoppers are seen at the entrance of the Coach Inc. store. New York. (Photographer: Michael Nagle/Bloomberg via Getty Images/Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Tapestry’s stock rose more than 13% and was trading at its highest level in a decade following Thursday’s announcement of share buyback alongside the completion of the merger.
Source link
