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Michael Kors Holdings adds Versace to its brand stable and is renamed Capri Holdings to better reflect its growing empire.
The $ 2.1 billion transaction, worth € 1.8 billion, was eagerly awaited and adds the maximalist sensitivity of the Italian brand to its portfolio, which includes Michael Kors and Jimmy Choo, acquired for $ 1.2 billion. last year.
John Idol, President and CEO of Kors, said, "The acquisition of Versace is a milestone for our group. Versace was founded in 1978. For more than 40 years, Versace has been the epitome of fashionable luxury in Italy, a testament to the timeless heritage of the brand … With all the resources of our group, we believe that we believe strength of brands Michael Kors and Jimmy Choo, as well as the acquisition of Versace, allow us to achieve several years of revenue and profit growth. "
Idol said he would work with Donatella Versace on the next chapter of the brand's growth.
"It has been more than 20 years since I took over the business with my brother Santo and my daughter Allegra," she said. "I am proud that Versace remains very strong in fashion and modern culture. Versace is not only synonymous with its iconic and incomparable style, but also inclusion and diversity, while allowing people to express themselves. Santo, Allegra and I recognize that this next step will allow Versace to reach its full potential. "
The operation, financed by Kors with liquidity and its credit facility, includes shares valued at 150 million euros in the new Capri Holdings companies.
Versace will continue to be led by CEO Jonathan Akeroyd.
Kors has high hopes for the brand. His plans include:
- Business growth to $ 2 billion in revenue
- Ssuking on his runway momentum
- Addition of 100 stores for a total of about 300
- Stimulate the development of electronic commerce
- Expanding accessories and shoes to 60% of sales, up from about 35% now
The transaction, which is expected to close in the fourth quarter, marks a big change for what is now Capri.
"Our name is inspired by the legendary island that has long been recognized as an iconic, glamorous and luxurious destination," said the company. "The spectacular formation of three rocks of the island, formed more than 200 million years ago, symbolizes the timeless heritage and solid foundation of each of the three brands of our global luxury group.
The agreement confirms a report released Sunday on WWD.com according to which many strategic buyers, including Kors, were watching the company and that a deal was near.
While Kors seemed to emerge as the winner, the company's investors were worried about the risks inherent in any major acquisition and the potential price tag, sending Kors shares down 8.2% to $ 66.71. Monday. That left him with a market capitalization of $ 10 billion.
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