Michael Kors has been trying to reclaim a high-end image for quite some time and has just made an important step in that direction. The American fashion group will be taking over Italian luxury brand Versace and cashed out $2.2 billion to make it happen.
Michael Kors Holdings Ltd. will be renamed to Capri Holdings Limited, after this surprising acquisition that took the fashion world by storm. Despite the fact that many fans of Versace found it shocking, it was a predictable move since Michael Kors started shopping for high-profile fashion brands long before this news hit the fan. They cashed out $1.2 billion to buy British company, Jimmy Choo, last year.
Versace’s takeover brings them closer to becoming an international house of fashion brands. They’re hoping Italian company will flourish in the years to come and bring $2 billion in annual sales. It sounds extremely ambitious since it’s twice more than it’s bringing in now, but masterminds at Michael Kors will try to accomplish this goal by expanding the number of global stores and accelerating e-commerce development.
Even after the acquisition, Santo, Allegra, and Donatella Versace aren’t going anywhere. They’ll become shareholders in Capri Holdings Limited, and watch the company grow with the rest of us. They believe this move demonstrates their belief in the long-term success of Versace and commitment to this new global fashion luxury group.
“Santo, Allegra and I recognize that this next step will allow Versace to reach its full potential. We believe that being part of this group is essential to Versace’s long-term success. My passion has never been stronger. This is the perfect time for our company, which puts creativity and innovation at the core of all of its actions, to grow,” explained Donatella Versace.
