American Tapestry close to buying owner of Jimmy Choo and Versace

American Tapestry Inc., which owns, in particular, the Coach brand, is negotiating the purchase of Capri Holdings, the owner of Michael Kors, Jimmy Choo and Versace fashion houses, Report informs via The Wall Street Journal.

According to newspaper sources, the parties may announce the deal as early as Thursday.

Capri's capitalization is $4.1 billion, and the deal is likely to include a premium to the market price, the WSJ notes. Capitalization of Tapestry is close to $10 billion.

Capri was supposed to release its first quarter fiscal year 2024 results on Tuesday, but unexpectedly pushed it back to Thursday without explanation.

Capri shares are down 40% since the start of the year. The company's market value reached $20 billion at the beginning of 2014, but has declined significantly in recent years, also due to the fact that the assets it bought showed mixed results.

Tapestry is up 8.3% in 2023.