Michael Kors’ $2Bn Versace Deal

Asa Fox
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US fashion company Michael Kors has confirmed its acquisition of Italian fashion house Versace for $2.1 billion. It is to rename itself Capri Holdings upon the closing of the deal.

The enlarged Capri will comprise of three global fashion brands: Michael Kors, Versace, and Jimmy Choo. Donatella Versace, the brand’s artistic director and sister of founder Gianni Versace, will continue to lead the creative side of the business.

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Michael Kors also outlined plans to increase the number of Versace retail stores worldwide from 200 to 300 and push the share of revenues from 35% to 60%.

The sale of Versace marks a turning point in the brand’s history. Founded in 1978, it has been majority-owned by members of the Versace family since its inception.

At the time of founder Gianni Versace’s death in 1997, the company had been making plans for a listing on the New York Stock Exchange, but it has remained private ever since.