Michael Kors takes over Versace in $2.1bn deal

The company's name will be changed to Capri Holdings

MILAN:

US fashion group Michael Kors has agreed to buy Versace in a deal valuing the revered designer at $2.12 billion, the companies said in a joint statement today, making it the latest Italian brand falling into foreign hands.

As part of the deal, Michael Kors agreed to buy all of Versace’s outstanding shares for a total enterprise value of $2.1 billion , to be funded in cash, debt and shares in Michael Kors Holding Ltd, which will be renamed Capri Holdings Ltd.

PHOTO: E! NEWS

US private equity firm Blackstone, which bought 20% of Versace back in 2014, will fully exit its investment. The Versace family, which currently owns 80% of the fashion house via a holding company called Givi, will receive $176 million of the purchase price in Capri shares.

The deal is expected to close in the fourth fiscal quarter, subject to regulatory approvals.

 

PHOTO: HOLLYWOOD REPORTER

 

 

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