MILAN: US fashion group Michael Kors has agreed to buy Versace in a deal valuing the revered designer at $2 billion including debt, the companies said on Tuesday, making it the latest Italian brand to fall into foreign hands.
Michael Kors, whose namesake label is best known for its leather handbags, has made no secret of its ambition to grow its portfolio of high-end brands after buying British stiletto-heel maker Jimmy Choo for $1.2 billion last year.
Versace, known for its bold and glamorous designs and its Medusa head logo, was one of a clutch of family-owned Italian brands cited as attractive targets at a time when the luxury industry is riding high on strong demand from China.
“We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth,” John Idol, chairman and CEO of Michael Kors said.
As part of the deal, Michael Kors agreed to buy all of Versace’s outstanding shares for a total enterprise value of €1.83 billion ($2.2 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 percent of Versace back in 2014, will fully exit its investment.
The Versace family, which currently owns 80 percent of the fashion house via a holding company called Givi, will receive €150 million of the purchase price in Capri shares.
“We believe that being part of this group is essential to Versace’s long-term success. My passion has never been stronger,” said Donatella Versace, sister of the company’s late founder, and artistic director and vice president of the Milan-based group.
After the deal, Versace CEO Jonathan Akeroyd will remain at the helm of the company, while Donatella Versace will “continue to lead the company’s creative vision,” Idol added.
The deal is expected to close in the fourth fiscal quarter, subject to regulatory approvals.
Michael Kors said it plans to grow Versace’s global sales to $2 billion globally, boost its retail footprint to 300 stores from around 200 at present and accelerate its e-commerce strategy. It also plans to raise the share of higher-margin accessories and footwear to 60 percent of sales from 35 percent.
Versace does not disclose its financial details, but documents deposited with the Italian chamber of commerce show that last year it posted sales of €668 million and earnings before interest, tax, depreciation and appreciation of €45 million.
Michael Kors agrees to buy Versace for €1.83 billion
Michael Kors agrees to buy Versace for €1.83 billion
Arab designers shine bright at the Golden Globes
DUBAI/ LOS ANGELES: Arab designers dressed a handful of stars at the 83rd Annual Golden Globes on Sunday, with talent from Lebanon, Egypt and Saudi Arabia among the designers to be featured on the awards ceremony red carpet.
Show host Nikki Glaser took to the red carpet at the event in a baby pink gown by Lebanese designer Zuhair Murad.
The outfit, one of many costume changes for Glaser on Sunday night, hailed from his Resort 2026 collection.
For her part, Kylie Jenner was spotted at the awards ceremony in a custom-made silver gown by Saudi couturier Mohammed Ashi, the founder of Paris-based label Ashi Studio.
Irish TV personality Maura Higgins looked elegant in a figure-hugging black gown with a textured golden shawl-like accessory by Dubai-based Egyptian designer Marmar Halim.
Timothee Chalamet and a sea of other stars also said goodbye to color at this year's Golden Globes, opting instead for black.
Ariana Grande left behind her “Wicked” character's signature pink color for a black Vivienne Westwood couture dress but brought back her ponytail. Other notable celebrities in black included Ayo Edebiri, Selena Gomez, Miley Cyrus and Mia Goth.
Edebiri chose a black off-the-shoulder Chanel dress embellished with jewels on the shoulders from Matthieu Blazy’s Métiers d’Art 2026 show.
Celebrities held onto their gowns and watched their steps as they posed for photos on high stairs that served as the red carpet. Like the Met Gala, they lined up at the bottom and had to perilously climb their way up.
The 83rd Golden Globes gives a glimpse into how celebrities will showcase their original take on fashion as the awards season progresses. Since 1944, the show has honored the best in film and television.
The carpet, at The Beverly Hilton in Beverly Hills, California, is a chance for nominees to make a statement, though some are beholden to fashion houses who pay them as ambassadors.
Several, including George Clooney, wore Giorgio Armani. The fashion world lost Armani in September, but his eponymous brand lives on.
“It was nice to see so many attendees, including Julia Roberts and Kate Hudson, wearing the brand and pay tribute,” said Véronique Hyland, fashion features director for Elle.
Stars also shone in metallics. “Sentimental Value” actor Renate Reinsve twirled on the carpet in a shimmery silver tasseled dress by Nicolas Ghesquiere for Louis Vuitton. Her co-star Elle Fanning's Gucci dress was embroidered with Norwegian flowers in honor of their Norwegian drama film.
