Luxury fashion group Michael Kors has just acquired Versace for an enterprise value of approximately $2.12 billion, it was announced today. The company also plans to change their name from Michael Kors Holdings to Capri Holdings.
It appears that this is the latest step by Michael Kors Holdings to become America's first luxury conglomerate, having already acquired shoe design house Jimmy Choo in 2017 for $1.2 billion.
In a press release announcing the acquirement, Michael Kors Chairman and CEO John Idol said: "We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth.
"With the full resources of our group, we believe that Versace will grow to over US$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."
Under the new organisation, John Idol will remain as CEO and chief executive of the Michael Kors brand. Versace creative director Donatella Versace will also continue on in her position.
Speaking about the announcement, Donatella said: “I am proud that Versace remains very strong in both fashion and modern culture. Versace is not only synonymous with its iconic and unmistakable style, but with being inclusive and embracing of diversity, as well as empowering people to express themselves. Santo [her brother], Allegra [her daughter] and I recognise that this next step will allow Versace to reach its full potential."