Global Fashion: Michael Kors Bags Versace for $2.1 billion
On Tuesday, Global fashion house Michael Kors revealed that it had agreed to purchasing the well-known Italian luxury giant Versace. This will add a new adding a new layer to its offering after buying shoemaker Jimmy Choo last year.
Although Michael Kors has roots in the United States and a full-functioning headquarter in London, the brand just recently hit off a deal with Versace to buy the fashion brand for 1.83 billion euros ($2.1 billion).
“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.
He further added, “With the full resources of our group, we believe that Versace will grow to over $2.0 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,” he concluded.
The director and vice-president of the Italian group, Donatella Versace said that the takeover was “essential to Versace’s long-term success”.
She further 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, Perfumes, and Watches:
Michael Kors – best for its bags, watches and perfumes – plans to grow the number of Versace stores across the globe by 50 percent to 300.
Giaani Versace, who is the brains behind Versace was born in Calabria to a dressmaker mother and showcased his first signature collection in the year 1978. His brother, Santo is currently taking care of the brand’s main business.
However, the beloved designer, whose designs were worn by mega celebrities such as Madonna was murdered in 1997 by a luxury obsessed male prostitute named Andrew Cunanan, in front of his mansion in Miami.
Earlier on Tuesday, Versace chief executive Jonathan Akeroyd said that since he joined the business about 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”.
Michael Kors is named after its founder and was first launched in 1981.