The fashion conglomerate, Tapestry, announced on Thursday that it will be acquiring Capri Holdings in a deal valued at $8.5 billion.

The acquisition will create the largest American fashion giant to date combining the brands Coach, Kate Spade, and Stuart Weitzman and Capri’s Versace, Jimmy Choo, and Michael Kors. The combination of these brands is designed to become more competitive with other foreign companies, specifically those within Europe. Tapestry CEO Joanne Crevoiserat stated that the acquisition will allow Tapestry to have a presence in over 75 countries with an annual revenue of $12 billion.

The announcement of the deal surged Capri’s share price increasing it by 56% well Tapestry fell 12%.

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‍Source: Financial Times