Updated: Oct 4, 2018
Michael Kors Buys Versace in a $2.12 Billion Deal
Tuesday, Sept. 25, 2018, 7:55 AM: On Tuesday, Michael Kors Holdings Ltd. has confirmed the full acquisition of Gianni Versace Inc. for a total value of $2.12 billion, of which 150 million euros were deposited directly into the Versace family's account.
"We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth," said CEO John D. Idol in an official statement. "With the full resources of our group, we believe that Versace will grow to over $2 billion in revenues. 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."
According to fashion idol, Donatella Versace (who, along with her brother Santo and daughter Allegra, took over her family business more than two decades ago) will continue to lead the Italian house's creative vision. Versace CEO Jonathan Akeroyd will still hold his two-year-plus role alongside Donatella and their design and managements teams.
"Santo, Allegra and I recognize that this next step will allow Versace to reach its full potential," said Donatella in an official 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. We believe that being part of this group is essential to Versace's long-term success. My passion has never been stronger. This is the perfect time for our company, which puts creativity and innovation at the core of all of its actions, to grow." Following in the footsteps of Coach Inc.'s switch to be called Tapestry Inc., the global luxury fashion group has also been renamed to Capri Holdings Ltd., in which Donatella, Santa and Allegra will become shareholders.
In addition to Capri Holdings Ltd.'s plans to increase Versace's global revenue to $2 billion, the conglomerate also aims to increase its retail presence around the world, enhance its marketing, accelerate its e-commerce and omni-channel development, expand the revenues of accessories and footwear, as well as maintain the high anticipation that comes with Versace's runway shows.