Shares of Capri Holdings (NYSE: CPRI) were up 56% at 10:08 a.m. ET on Thursday after agreed to acquire the company for $57 per share for a total value of $8.5 billion. The companies will combine their leading brands to create a global fashion powerhouse that can better compete in the global luxury goods industry.

The luxury goods industry should grow again this year after a record 2022.  The market is projected to more than double by 2030, according to Bain and Company.

Falling inflationary pressures are creating more demand, which is an opportunity for leading players like Tapestry, which owns Kate Spade, Coach, and Stuart Weitzman. Tapestry needs Capri's Versace, Jimmy Choo, and Michael Kors brands to broaden its portfolio and gain valuable customer data to better compete with the big fashion houses in Europe.

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Source Fool.com