Michael Kors, the company that produces designer things and bags, will buy Gianni Versace, a bright representative of the Italian fashion world. This purchase will cost the company 1.8 billion euros. This is a big step in the development of Michael Kors, which has already got several brands.
When the deal takes place, the company will change the name into Capri Holdings Ltd.
Versace Fashion House has been successful for 30 years, maintaining high standards of luxury fashion. John D. Idol, Chairman of Michael Kors Holdings Limited, said that the purchase of Versace would be a landmark event in the history of the company. He stressed that the brand Versace would develop intensively. A lot of money will be invested in the project in order to make a profit of $ 2 billion a year.
“The quality of the brands Michael Kors, Jimmy Choo and Versace will contribute to increasing the revenue of the brand association,” says Mr.Idol, “Donatella Versace will remain in the chair of the creative director. Jonathan Akeroyd, CEO of Versace, will continue to head the company.
Michael Kors will acquire Versace using its own and borrowed funds. According to the agreement, the family of Versace will take a share in Capri Holdings Ltd. The cost of this share will be equal to 150 million euros.
Michael Kors also explained the choice of the new name. “We were inspired by a beautiful island. There are 3 rocks on it, which originated two hundred years ago. We consider this a symbol of wealth, which is a cornerstone for our brands.”
We recall that Versace Fashion House opened in 1978.It specializes in the creation and sale of luxury goods, which include clothing, accessories, jewelry, watches, glasses, etc. The brand logo symbolizes image and a bold style.
There are about two hundred boutiques under the Versace brand located in the world’s largest cities.
When the founder of the fashion house Gianni Versace was killed in 1997, his sister took over the company. She is a creative director of the company. Her brother Gianni Santo heads the board of directors of the company.
The material was prepared with the participation of Anjela Chromova,
a leading analyst of the brokerage company CT Trade