subscribe to brand news 
b2b Magazine
25.07.2017 | Наталья Кулагина

Michael Kors Buys Jimmy Choo for $1.2 billion

The company Michael Kors acquires the British luxury shoe brand Jimmy Choo. This is reported by Bloomberg.The transaction amount will be about 896 million (or $1.2 billion). As we wrote earlier, in April the company Jimmy Choo was put up for sale because its majority shareholder, the holding company JAB Holdings Co –the investment company of the billionaire Rayman family, – decided to focus on the production of food and chain coffee shops.

 

Under the terms of the contract, Michael Kors will pay 2.3 ($2.99) for each share of Jimmy Choo, which is 36.5% higher than the company's share price before the announcement of the sale. The price, as Bloomberg notes, is 17.5 times higher than EBITDA Jimmy Choo for 2016.

 

 

The terms of the transaction were agreed by the boards of directors of both companies. In addition, representatives of Michael Kors stated that they intend to retain the current management of the shoe manufacturer. In particular, the CEO of Jimmy Choo will remain in his postPierre Denis


The company Jimmy Choo was founded by Malaysian designer Jimmy Choo in London in 1996. Quickly enough, the brand, thanks to the production of spectacular and trendy shoes, achieved fame, and many famous personalities, including Princess Diana, as well as the character of the popular TV series "Sex and the City" Carrie Bradshaw, became its fans. In 2003, Jimmy Choo, the founder of the company, received the honorary title of Officer of the Order of the British Empire for his services to the fashion industry. Now the company owns about 150 branded stores around the world.

 

Jimmy Choo competes for the attention of fans of high-heeled shoes with such brands as Manolo Blahnik and Christian Louboutin.

 

 

Michael Kors An American brand that produces clothing, shoes, perfumes and accessories. The company sells its products under the names MICHAEL KORS, MICHAEL MICHAEL KORS and other relevant trademarks and logos. Michael Kors Holdings Limited was founded Michael Kors in 1981 and is based in London.

 

 

The acquisition of Jimmy Choo is the first deal by Michael Kors that goes beyond his own company. And since Jimmy Choo – a brand of a higher class, then the company now gets the opportunity to be present in the premium segment. 

 

Photo: shutterstock.com

0