London based with roots in United States, Michael Kors, is set to acquire Italy based Versace for 1.83 billion euros ($2.1 billion). Michael Kors also bought shoemaker Jimmy Choo last year for $1.4 billion and with the latest acquisition of Versace will add new layer to Michael Kors offering.
According to Michael Kors chief executive John D. Idol:
“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 $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.”
Michael Kors is best known for bags, watches and perfume is set to increase Versace stores to 300 which is a 50 percent increase. Michael Kors is positioning itself to be fully equipped to compete with Paris-based LVMH and Kering and the Swiss company Richemont.
About Michael Kors
Founded in 1981, Michael Kors design, markets, distributes, and retails branded women’s and men’s apparel and accessories and it operates in four segments: MK Retail, MK Wholesale, MK Licensing, and Jimmy Choo. Headquartered in the UK, Michael Kors operates 379 Michael Kors retail stores, including concessions in the United States and Canada (North America), and Latin America (the Americas); and 450 international retail stores, including concessions in Europe and Asia, as well as e-commerce sites in North America, Canada, Europe, China, Japan, and South Korea.
Founded in 1978, Versace manufactures and distributes clothes and accessories for men and women. Headquartered in Italy, Versace offers bags, shoes, pens, eyewear, fragrances, watches, jewelry, and home products. Versace sells through online as well as through its stores and boutiques in Europe, the Russian Federation and Central Asia, the Middle East, the Asia Pacific and Australia, China Mainland, Japan, the United States, Canada, and Central and South America.