Despite last month’s vow to appeal the blocked merger, today, both companies have reached a mutual agreement to officially pull out of the deal.
The $8.5 billion acquisition aimed to combine six fashion brands under one company: Tapestry’s Coach, Kate Spade, and Stuart Weitzman with Capri’s Versace, Jimmy Choo, and Michael Kors.
According to a statement released by both companies today, “Capri and Tapestry mutually agreed that terminating the merger agreement at this time is in the best interest of both companies, as the outcome of the legal process is uncertain and unlikely to be resolved by the February 10, 2025, outside date.” The company also released details about its latest $2 Billion Share Repurchase Authorization plan.
Joanne Crevoiserat, Tapestry, Inc.’s CEO, said, “We have always had multiple paths to growth, and our decision today clarifies the forward strategy. Building on our successful first quarter, we will move with speed and boldness to accelerate growth for our organic business. Tapestry remains in a position of strength, with distinctive brands, an agile platform, passionate teams, and robust cash flow. We have significant runway ahead and are pleased to announce today an additional shareholder return program, as we believe there is no better investment at this time than our own stock.”
Capri’s CEO, John D. Idol, stated in the company press release today, “With the termination of the merger agreement, we are now focusing on the future of Capri and our three iconic luxury houses. Looking ahead, I remain confident in Capri’s long-term growth potential for numerous reasons.” The company released it’s “return to growth”plan. “Given our Company’s performance over the past 18 months, we have recently started to implement a number of strategic initiatives to return our luxury houses to growth.” Idol said.
By CEO NA Editorial Staff
