Michael Kors bags Versace for $2.1 bn
LONDON - AFP
Michael Kors, with roots in the United States but headquartered in London, has struck a deal to buy Versace for 1.83 billion euros, a statement said.
"We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth," said Michael Kors chief executive John D. Idol.
"With the full resources of our group, we believe that Versace will grow to over $2.0 billion in revenues," he added.
"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." Donatella Versace, artistic director and vice-president of the Italian group, said the takeover was "essential to Versace's long-term success."
She added in the statement: "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." Michael Kors, best known for its bags, watches and perfume, said it planned to grow the number of Versace stores worldwide by 50 percent to 300.
The deal is the latest push by Michael Kors into high-end luxury after it bought British shoemaker to the stars Jimmy Choo in 2017 for $1.4 billion.
It is seen also as positioning Michael Kors more fully as a competitor to Paris-based LVMH and Kering and the Swiss company Richemont among global heavyweights in luxury across various product lines, analysts said.