Global fashion house
Michael Kors said Tuesday it had agreed to buy Italian luxury giant
Versace, adding a new layer to its offering after buying shoemaker Jimmy Choo last year.
Michael Kors, with roots in the United States but headquartered in London, has struck a deal to buy
Versace for $2.1 billion (
N762bn), 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.”
– Bags, watches and perfume –
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.
Versace was the brainchild of Gianni
Versace,
who was born in Calabria to a dressmaker mother and presented his first
signature collection in 1978, with his brother Santo taking care of the
label’s business arm.
But the designer, whose bold designs were embraced by Madonna and
other mega-celebrities, was the victim of a bizarre slaying in 1997 by
luxury-obsessed male prostitute Andrew Cunanan in Miami.
Twenty percent of
Versace, known for its Medusa head logo, was bought by US private equity group Blackstone in 2014, and the family owns the rest.
Versace
chief executive Jonathan Akeroyd on Tuesday said that since joining the
company two years ago, “focus has been on leveraging the company’s
heritage and strong brand recognition worldwide”, in turn helping “to
experience significant growth in all regions”.
Launched in 1981,
Michael Kors is named after its US founder.