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.
This is breaking news and will be updated.
Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email brian.sozzi@yahoofinance.com.
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