Versace must be sold to Michael Kors, announces US companies

Michael Kors has agreed to buy the Italian fashion house Versace for 2.1 billion dollars, confirmed Tuesday the American company.

The affordable fashion brand, known for its handbag, will change its name to become Capri Holdings once the deal is finalized, the company said.

John D. Idol, President and CEO of Michael Kors Holdings, said the deal was “an important step for our group”.

“For more than 40 years, Versace has been the epitome of the luxury of Italian fashion, witnessing the timeless heritage of the brand.

Versace fans rebel against the alleged sale of the brand to Michael Kors
“We are delighted that Versace is part of our family of luxury brands and we are committed to investing in its growth,” he said.

“We believe that Versace will reach more than $ 2 billion in revenue with all the resources of our group.

“We believe that the strength of the Michael Kors and Jimmy Choo brands and the acquisition of Versace will enable us to achieve multi-year revenue and earnings growth.”

The confirmation of the sale comes after the fans asked Versace to stop selling.

The Italian luxury brand was founded 40 years ago by Gianni Versace. After the assassination of Mr. Versace in 1997, his family took over the business.

The Versace family currently owns 80% of the company, the remaining 20% ​​being held by the private equity group Blackstone, which bought the company in 2014 to float it.

However, Blackstone deemed the investment disappointing and abandoned its float projects some time ago.

Donatella Versace, vice-president and chief designer of the group, said: “This is a very exciting moment for Versace, it’s been more than 20 years since I took over the company with my brother Santo and my daughter Allegra, and I am proud that Versace is very strong in fashion as well as in modern culture.

“Versace is not only synonymous with iconic and distinctive style, but also with inclusion and inclusion of diversity as well as people’s ability to express themselves.” Santo, Allegra and I are aware that this new stage will allow Versace to take on its full dimension. Exploit the potential. ”

Ms. Versace added, “We believe that it is essential for Versace’s long-term success to be part of this group, my passion has never been stronger, it’s the perfect time for our company to place creativity and innovation at the heart of its priorities. ” Activities to grow.

“Santo, Allegra and I will become shareholders of Capri Holdings, demonstrating our confidence in Versace’s long-term success and commitment to this new global luxury fashion group.”

The purchase of Versace is the second major transaction announced by Michael Kors in the last 18 months. The company bought shoe designer Jimmy Choo for £ 921 million last year.

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