Michael Kors buys Versace for 1.83 bn euros
US fashion group Michael Kors on Tuesday said it had bought the Versace fashion house for 1.83 billion euros or around $2.12 billion.
Kors said it had reached an agreement to buy all the shares in Gianni Versace SpA. In the transaction, the Versace family will receive 150 million euros in shares in Capri Holdings Limited, the new name that will be adopted by Michael Kors Holdings Limited upon the completion of the acquisition.
This name, Kors said, was inspired “by the legendary island that has long been recognised as an iconic, glamour and luxury destination”.
“The acquisition of Versace is an important milestone for our group,” Michael Kors Chief Executive Officer John Idol said in a statement. “We are committed to investing in its growth.”
Donatella Versace, who will stay on at the creative side, said: “Santo, Allegra and I are aware that this next step will enable Versace to reach its full potential”.
“We are all very excited to join the group led by John Idol, whom I have always admired as a visionary leader but also strong and passionate. “We believe that being part of this group is essential for Versace’s long-term success”. Versace CEO Jonathan Akeroyd will also stay on.