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Portfolio Pulse from Anusuya Lahiri
Tapestry, Inc (TPR) plans to acquire Capri Holdings Limited (CPRI) for $57.00 per share, a total enterprise value of approximately $8.5 billion. The combined company is expected to generate over $12 billion in global annual sales. TPR has secured $8.0 billion in bridge financing from Bank of America N.A. and Morgan Stanley Senior Funding, Inc. Telsey Advisory Group maintained CPRI with a Market Perform and raised the price target from $41 to $57. Raymond James downgraded CPRI from Strong Buy to Market Perform.
August 11, 2023 | 5:24 pm
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NEUTRAL IMPACT
Capri Holdings' acquisition by Tapestry could lead to cost synergies and increased global presence, but challenges in the U.S. wholesale channel and pricing pressures may affect its outlook.
The acquisition by Tapestry could potentially lead to cost synergies and increased global presence for Capri Holdings. However, the company faces challenges in the U.S. wholesale channel and pricing pressures, which may affect its outlook.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Tapestry's acquisition of Capri Holdings could boost its global sales, but the suspension of share repurchase activity and increase in debt may concern investors.
The acquisition could potentially increase Tapestry's global sales and presence. However, the suspension of its share repurchase activity and the increase in debt to finance the acquisition could negatively impact investor sentiment.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100