Michael Kors acquires Versace for £1.6bn

Michael Kors has acquired Italian fashion house Versace for £1.6bn, with the deal expected to close in the final quarter of 2019.

Upon the closing of the acquisition, Michael Kors Holdings will be renamed to Capri Holdings, with the name inspired by “the fabled island which has long been recognized as an iconic, glamorous and luxury destination”. Private equity firm Blackstone Group, which bought a 20% stake in the firm four years ago, will also sell its holding.

Michael Kors CEO, John D Idol, and Versace CEO, Jonathan Akeroyd, will both remain in their respective roles, and creative director Donatella Versace, sister of the founder Gianni Versace, will also remain at the company.

The new owners said it has a “strategic plan” in place to grow Versace’s global revenues to $2bn (£1.5bn) and increase its global retail footprint from approximately 200 to 300 stores.

Idol said: “The acquisition of Versace is an important milestone for our group. Versace was founded in 1978. For over 40 years, Versace has represented the epitome of Italian fashion luxury, a testament to the brand’s timeless heritage.

“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 $2bn 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.”

Akeroyd added: “Since I joined Versace over two years ago, our focus has been on leveraging the company’s heritage and strong brand recognition worldwide, which has allowed us to experience significant growth in all regions. Donatella’s unmatched vision has led to the continued and growing success of our brand. I am thrilled to be joining Capri Holdings Limited, which will be instrumental in accelerating our growth globally.”