Michael Kors confirms $2bn Versace deal
Michael Kors has acquired Italian luxury designer Versace for $2.12bn (£1.61bn), the US fashion brand confirmed today.
Michael Kors Holdings will be renamed Capri Holdings, and Donatella Versace, sister of the late founder Gianni, will become a shareholder in the new company along with brother Santo Versace and daughter Allegra Versace.
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Versace chief executive officer Jonathan Akeroyd will continue to lead the brand's management team as the fashion house looks to add an additional 100 stores globally.
Michael Kors chief executive John Idol said: “We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth.
"With the full resources of our group, we believe that Versace will grow to over $2bn in revenues.
"We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth.”
The acquisition is expected to help Michael Kors grow revenues to $8bn, and increase its European and Asian presence.
U.S. private equity group Blackstone bought a 20 per cent stake in Versace 2014 to fund overseas expansion.
Blackstone chairman and chief executive Stephen Schwarzman said: "We are delighted for Donatella and the Versace family on the sale of the company.
"Blackstone has had the privilege of working with Donatella and the management team over the last five years, and we played an integral role in helping accelerate Versace’s growth.
"We now wish Versace continued success as it embarks on its next chapter.”
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