[ad_1]
American fashion group Michael Kors has agreed to take control of Italian Versace, a source told CNBC on Monday.
An official announcement should be made this week.
Michael Kors did not hide his ambition to grow his portfolio of high-end brands after beating British stiletto maker Jimmy Choo for $ 1.2 billion last year. The company, whose homonymous label is best known for its leather handbags, could not be contacted immediately for comment. Versace declined to comment.
The Italian fashion icon envisioned a market listing after the US private equity group Blackstone bought 20% of the shares in 2014 to finance its expansion abroad.
After investing in Versace at a high multiple, Blackstone found the fashion group's performance disappointing and insufficient to justify a market listing, said one of the sources, close to the family.
"They gradually persuaded the family to consider a possible sale and present it to a series of buyers, including Michael Kors," Reuters sources said. "Blackstone would not invest more money in. They needed a buyer who could make big investments."
Source link
