Tapestry, the owner of Coach, is acquiring Capri, Versace's parent company, in an $8.5 billion deal to create a luxury fashion conglomerate.
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Six brand powerhouse
The merger forms an entity housing six major brands including Stuart Weitzman, Kate Spade, Jimmy Choo, and Michael Kors.
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Diverse portfolio strategy
With Tapestry's strength in Asia and Capri's European sales, the unified company can adopt a diverse brand portfolio strategy.
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Future plans
The all-cash takeover aims to boost sales through customer data integration, geographic expansion, and achieving $200 million in annual cost savings within three years.
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Challenging European dominance
Despite LVMH's $87 billion revenue dwarfing the combined $12 billion of Tapestry and Capri, they are expected to put up a challenge.