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Michael Kors buys the Italian fashion brand Versace for $ 2.12 billion. Donatella Versace, artistic director of the company created by her brother, is accompanied by Versace CEO Jonathan Akeroyd and Michael Kors CEO John D. Idol.
Rahi Rezvani
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Rahi Rezvani
Michael Kors buys the Italian fashion brand Versace for $ 2.12 billion. Donatella Versace, artistic director of the company created by her brother, is accompanied by Versace CEO Jonathan Akeroyd and Michael Kors CEO John D. Idol.
Rahi Rezvani
The fashion company Michael Kors buys Versace, the Italian luxury brand founded by Gianni Versace in 1978, for 2.12 billion dollars. The two fashion houses made the announcement on Tuesday, a day after speculation spread over a potential deal.
Donatella Versace, artistic director of the Milan fashion house who helped run the business after her brother's death in 1997, said it was the perfect time to join Michael Kors.
"It has been more than 20 years since I took over the business with my brother Santo and my daughter Allegra," Donatella Versace said in a press release. "I am proud that Versace remains very strong in fashion and modern culture."
On the social networks, fans of the Versace brand were less enthusiastic.
"STAY VERSACE", a woman written in response to a tweet from Michael Kors, as rumors of the deal spread Monday afternoon.
When the Twitter account of Versace posted a picture of new handbags As the agreement was issued, the most common answer was how could the company "tweet about the purses at a time?" Another user simply wrote "Do not sell to Michael Kors".
But sell they did. In addition to a mountain of money, Versace and his brother will receive 150 million euros (about 177 million dollars) of shares of the newly united company. When the transaction is completed, Michael Kors Holdings Limited will change its name to Capri Holdings Limited.
"We are delighted that Versace is part of our family of luxury brands and we are committed to investing in its growth," said John D. Idol, President and CEO of Michael Kors. "With all the resources of our group, we believe that Versace will exceed $ 2 billion in revenue."
Describing this plan, Kors said he wants to put Versace products in more stores – about 200 to 300 now. revenues, up 35% currently.
The combined company is also expected to change the geographic footprint of Michael Kors Holdings. The fashion brand wants to reduce its dependence on business in America and increase its exposure in Asia.
The designer Michael Kors founded his fashion and design company in 1981 in Manhattan, where he is still based. It has flourished by focusing on expensive handbags and a commitment to selling its products in department stores. The purchase of Versace continues its attempts both to diversify its offerings and to benefit from high-end luxury sales.
In addition to his flagship line, Michael Kors also includes luxury footwear and accessories brand Jimmy Choo, purchased last summer for $ 1.2 billion.
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