Tapestry , the fashion conglomerate behind Coach and Kate Spade, will acquire competitor Capri Holdings in a $8.5 billion deal announced on Thursday.
It brings together six fashion brands: Tapestry's Coach, Kate Spade and Stuart Weitzman and Capri's Versace, Jimmy Choo and Michael Kors.
Shares of Capri surged 58% in premarket trading to just under the per-share deal price, while shares of Tapestry roughly 4%.
It's started to run a similar playbook with Kate Spade.
Tapestry has also looked other parts of the world to drive growth, such as chasing higher sales in China.
Persons:
Kate Spade, Stuart Weitzman, Capri's Versace, Jimmy Choo, Michael Kors, Kirsten Dunst, It's, We've, Joanne Crevoiserat, John Idol, Morgan Stanley
Organizations:
Capri Holdings, Capri, Disney, Bank of America
Locations:
American, China