Michael Kors approaches Versace Purchase in challenge to European luxury groups



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LONDON – Michael Kors is about to announce an agreement to buy Versace, the Italian fashion house, in its last stage to become a rival of luxury conglomerates in Europe, said Monday two knowledgeable people.

The sale would mark the end of the independence of one of the largest independent fashion houses in the midst of a wave of consolidation within the industry.

Last month, Ermenegildo Zegna acquired an 85% stake in Thom Browne, in an agreement that valued the US fashion company at $ 500 million. In June, the Spanish luxury group Puig acquired a majority stake in Dries Van Noten, one of the last independent labels in Europe, for an undisclosed price.

And in May, Richemont, which owns brands such as Cartier and Montblanc, acquired the luxury e-commerce group Net-a-Porter after a bid of 2.8 billion euros, or about $ 3.3 billion.

Versace, controlled by his family since the 1997 assassination of founder Gianni Versace, offers Kors a skein of intriguing possibilities. The Milan-based brand is known for its Medusa-head logo, glamorous dresses and printed prints that sell for thousands of dollars. Although he experienced financial difficulties after the death of Mr. Versace, he reversed the situation by reducing his debts and terminating certain franchise and license agreements.

As a private company, Versace does not disclose its financial information. The documents filed in 2017 at the Italian Chamber of Commerce show that the company achieved a turnover of 668 million euros, about 786,50 million dollars, and a profit of 52,5 million dollars before interests , taxes, depreciation and capital gains.

Kors shares fell more than 7% on Monday after the announcement of the negotiations, reported earlier by the Italian newspaper Corriere della Sera.

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