Accessories and lifestyle brand Tapestry has entered into a definitive agreement to acquire global fashion luxury group Capri Holdings.

The deal was valued at approximately $8.5bn.

The deal will bring together six major fashion brands, including Capri’s Versace, Jimmy Choo, Kate Spade, Michael Kors Stuart Weitzman and Tapestry’s Coach.

The companies have a presence in more than 75 countries, generating more than $12bn in sales and nearly $2bn in adjusted operating profit in the prior fiscal year.

The companies have projected $200m in savings from synergies within three years of the deal closing.

The deal is subject to approval by the Capri shareholders while boards of directors of both parties have unanimously approved the transaction. It is anticipated to close in 2024.

Tapestry chief executive officer Joanne Crevoiserat said: “We are excited to announce the acquisition of Capri Holdings – uniting six iconic brands and exceptional global teams. Tapestry is an organisation with a passion for building enduring brands through superior design and craftsmanship and an unwavering focus on our customers.

“Importantly, we’ve created a dynamic, data-driven consumer engagement platform that has fuelled our success, fostering innovation, agility and strong financial results. From this position of strength, we are ready to leverage our competitive advantages across a broader portfolio of brands.

“The combination of Coach, Kate Spade and Stuart Weitzman together with Versace, Jimmy Choo and Michael Kors creates a new powerful global luxury house, unlocking a unique opportunity to drive enhanced value for our consumers, employees, communities and shareholders around the world.”

The announcement comes as Capri reported its revenue declined by 9.6% to $1.23bn in the first quarter of fiscal year 2024.

During the quarter ending 1 July, the company also reported income from operations of $80m and a gross profit of $812m.