Michael Kors takes over Versace in $2.1bn deal
The company's name will be changed to Capri Holdings
PHOTO: AFP
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.
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.
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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.
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.
Have something to add to the story? Share in the comments below.