👉 Background: Tapestry is the New York-based luxury fashion house that owns Coach, Kate Spade, and Stuart Weitzman. And these brands are regularly sported by major celebs like J-Lo, Selena Gomez, and Gigi Hadid.

👉 What happened: Now, Tapestry has just acquired Capri Holdings, the owners of Versace, Michael Kors, and Jimmy Choo in a $13 billion dollar deal. Yep—the two fashion houses are teaming up to combine their strengths and reach into new global markets.  

👉 What else: And investors are licking their lips. Capri's shares exploded by a whopping 58% when this news was dropped... their biggest jump in almost 12 years!

What's the key learning?

💡Acquisitions are often a gateway to expand into new, appealing markets.

💡Tapestry and Capri coming together is an ultimate team-up of six major fashion brands, and these brands are all helping each other expand into new regions:

• In China, where Tapestry's got a strong reputation for their Coach brand, they'll be able to roll out Michael Kors more broadly.
• Tapestry will get its first direct access to the European luxury fashion market through Versace.

💡And this deal could mean major returns for the newly-merged company, especially since China makes up 15% of Tapestry's revenue.

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