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Michael Kors sells minority stake valuing brand at $2.5bn

A small stake in US fashion brand and retailer Michael Kors has reportedly been sold in a deal valuing the brand at $2.5bn (£1.53bn).

The transaction was completed last month but details only emerged today when the New York Post reported it. Money raised will be used to fund international growth including new stores in Europe and Asia.

According to the newspaper report, Michael Kors may attempt an IPO as early as 2012.

In June, the privately owned business hired investment bank Morgan Stanley to raise $500m (£313m) of growth capital. At the time, US premium fashion designer Tommy Hilfiger and Tommy Hilfiger co-founder Joe Horowitz were named as potential investors.

Michael Kors has more than doubled in size over the past four years and recently added a 7,000 sq ft store, its largest to date, in Paris. It also has plans to double store numbers from 100 at present in 2012.

The company was bought by Silas Chou and Lawrence Stroll in 2003 for a reported $100m. If Hilfiger and Horowitz are confirmed as the new investors it would reunite the four original investors in Tommy Hilfiger.

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