Following yesterday’s rumours, American luxury group Michael Kors Holding has bought Italian fashion house Versace.
Michael Kors Holding has purchased the remaining shares in Versace for a total enterprise value of approximately $2.12bn (£1.61bn). The new owner intends to increase Versace’s reveunes to $2bn (£1.52bn) and grow its retail footprint by approximately 100 stores.
Michael Kors Holding will be renamed Capri Holdings upon closure of the acquisition.
Last year, Michael Kors bought British accessories business Jimmy Choo for $1.2bn (£912m).
Versace is currently led by vice-president and chief designer Donatella Versace, who has run Versace since the murder of the brand’s founder, her brother, Gianni, in 1997, and CEO Jonathan Akeroyd, who will continue to head the Versace management team.
Versace was 80% owned by the family – Donatella, her daughter Allegra, and Donatella’s older brother Santo. The remaining 20% was owned by the private equity firm Blackstone Group.
John Idol, chairman and CEO of Michael Kors Holdings, 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.”
“This is a very exciting moment for Versace,” said Donatella Versace. “Santo, Allegra and I recognise that this next step will allow Versace to reach its full potential. We are all very excited to join a group led by John Idol, whom I have always admired as a visionary as well as a strong and passionate leader. We believe that being part of this group is essential to Versace’s long-term success. My passion has never been stronger. This is the perfect time for our company, which puts creativity and innovation at the core of all of its actions, to grow.”
Akeroyd said: “Since I joined Versace over two years ago, our focus has been on leveraging the company’s heritage and strong brand recognition worldwide, which has allowed us to experience significant growth in all regions. Donatella’s unmatched vision has led to the continued and growing success of our brand. I am thrilled to be joining Capri Holdings Limited, which will be instrumental in accelerating our growth globally.”