MICHAEL KORS bought VERSACE
Michael Kors Holdings Limited, which owns the international luxury fashion brand MICHAEL KORS, announced the signing of a final agreement on the acquisition of all shares of the Fashion house Gianni Versace S.p.A. The total value of the transaction is 1.83 billion euros (approximately 2.12 billion US dollars). Versace, long recognized as one of the world's leading companies in the luxury segment, is considered synonymous with Italian glamour and style. The newly formed group, as a result of the concluded agreement, will receive the nameCapri Holdings Limited after the closing of the transaction in honor of the legendary island, which has long been recognized as a cult, glamorous and luxurious place.
Part of the transaction value will be financed by cash, arrangements under the company's existing credit line and term loans from the group's consultants JPMorgan Chase Bank, N.A. and Barclays. The Versace family will also receive 150 million euros from the value of the shares of Capri Holdings Limited. It is expected that the transaction, including obtaining the necessary regulatory approvals, will be completed in the fourth quarter of next year.
Comments John D. Idol, Chairman and CEO of Michael Kors Holdings Limited: "Acquisition of Versace an important milestone in the development of our group. For more than 40 years Versace embodies Italian luxury and fashion, which testifies to the eternal heritage of the brand. We are glad that Versace will become part of our family of premium brands, and we plan to invest in its growth. We believe that due to our support, Versace will increase its turnover to more than 2.0 billion US dollars. We believe that combining the brands Michael Kors, Jimmy Choo andVersace will allow us to increase total revenue over several years. Donatella's famous style is at the heart of the design aesthetics of Versace. She will continue to lead the company's creative vision. I am very pleased to have the opportunity to work with Donatella.
Comments Donatella Versace: "This is a very interesting moment for Versace houses. It has been more than 20 years since I took over the management of the company together with my brother Santo and daughter Allegra. I am proud that Versace remains a significant figure both in fashion and in modern culture. Versace is a synonym not only for an unmistakable style, but also for a comprehensive and embracing variety. Santo, Allegra and I believe that this step will allow Versace to realize its full potential. We are very pleased to join the group led by John Idol, whose business vision and leadership qualities I have always admired. Participation in the group Michael Kors The key to the long-term success of Versace. This is an ideal time for the growth of our company, which puts creativity and innovation at the heart of all its decisions. Santo, Allegra and I will become shareholders of Capri Holdings Limited.
In the photo (from left to right): Jonathan Ackroyd, Donatella Versace, John D. Idol
The leadership ofVersace will continue to be headed by Chief Executive Director Jonathan Ackroyd, who was previously Donatella Versace's partner in promoting and developing the brand worldwide.Donatella Versace will continue to lead the creative team.
Source: MICHAEL KORS, shutterstock