Tapestry Is Acquiring Michael Kors, Versace and Jimmy Choo in $8.5 Billion Deal

Coach parent Tapestry is buying Michael Kors owner Capri Holdings in an $8.5 billion deal to better compete with Europe’s luxury fashion giants.

The deal will bring new heft to New York-based Tapestry’s portfolio, adding Capri’s Michael Kors, Versace and Jimmy Choo labels to the US group’s existing Coach, Kate Spade and Stuart Weitzman brands.

For years America’s fashion groups have lagged European “big luxury” heavyweights like…