US firm Michael Kors has agreed to acquire London-based luxury shoemaker Jimmy Choo for £896m.
As part of the agreement, Jimmy Choo will become a “wholly-owned subsidiary” of Michael Kors.
Michael Kors will pay 230p in cash for each Jimmy Choo share.
Michael Kors, who is honorary chairman and chief creative officer at the eponymous label, said: “Jimmy Choo is an iconic premier luxury brand that offers distinctive footwear, handbags and other accessories. We admire the glamorous style and trend-setting nature of Jimmy Choo designs.”
The acquisition is expected to close in the fourth calendar quarter of 2017.
It was previously reported that Michael Kors was among the bidders vying to buy Jimmy Choo. Chinese private equity firm Hony Capital and CVC Capital Partners, which used to own Debenhams, were also said to be in the running.
Jimmy Choo put itself up for sale in April. The move was supported by Jimmy Choo’s main shareholder JAB Holdings.
Jimmy Choo reported revenue of £364m for the fiscal year ended 31 December 2016, with adjusted EBITDA of £59m and operating profit of £42.5m.