Michael Kors buys Versace in $2.1bn deal.
US label Michael Kors has agreed to buy the storied Italian fashion house Versace for $2bn.
Michael Kors, which last year bought London shoemaker Jimmy Choo for almost £900m, confirmed on Tuesday that besides the purchase, it would fold all three brands into a new company called Capri Holdings – named after the favourite holiday island of wealthy fashionistas.
As the Versace family still owns 80% of the business, with Gianni Versace’s niece Allegra Versace Beck, 32, holding a 40% stake worth €732m (£654m), Donatella Versace plans to still keep a role in the company after the sale.
For John Idol, chairman and chief executive officer of Michael Kors, he stated that “The acquisition of Versace is an important milestone for our group. Versace was founded in 1978. For over 40 years, Versace has represented the epitome of Italian fashion luxury, a testament to the brand’s timeless heritage. … With the full resources of our group, we believe that Versace will grow to over $2.0 billion in revenues. We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth.”
Idol is set to work with Donatella Versace on the next practical step of one of fashions most iconic brands.