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
Fashion world pays tribute to Valentino
DUBAI: Models, celebrities and designers have paid tribute to Valentino Garavani, who died earlier this week at the age of 93.
The Italian designer, known for his high-glamour gowns and his signature shade of red, was a fashion show mainstay for nearly half a century.
Among those honoring him was model Mona Tougaard, who walked in his 2024 show. The Danish model, who has Turkish, Somali and Ethiopian heritage, shared the news on Instagram with a broken-heart emoji.
Dubai-based Hollywood star Lindsay Lohan also paid tribute by resharing a photo of herself with Garavani from a fan account, adding a broken-heart emoji and a bird emoji.
Lebanese designer Nicolas Jebran shared an image of the designer on his Instagram story, joining the wave of tributes from across the fashion world.
Known universally by his first name, Valentino was adored by generations of royals, first ladies and movie stars, from Jackie Kennedy Onassis to Julia Roberts and Queen Rania of Jordan, who all swore the designer always made them look and feel their best.
Though Italian-born and despite maintaining his atelier in Rome, he mostly unveiled his collections in Paris.
Alessandro Michele, the current creative director of the Valentino fashion house, wrote on Instagram that he continues to feel Valentino’s “gaze” as he works on the next collection, which will be presented in Rome on March 12.
Valentino was born into a wealthy family in the northern Italian town of Voghera on May 11, 1932. He said it was his childhood love of cinema that set him down the fashion path.
“I was crazy for silver screen, I was crazy for beauty, to see all those movie stars being sensation, well dressed, being always perfect,” he said in a 2007 television interview.
After studying fashion in Milan and Paris, he spent much of the 1950s working for established Paris-based designer Jean Desses and later Guy Laroche before striking out on his own. He founded the house of Valentino on Rome’s Via Condotti in 1959.
Early fans included Italian screen sirens Gina Lollobrigida and Sophia Loren, as well as Hollywood stars Elizabeth Taylor and Audrey Hepburn.
Over the years, Valentino’s empire expanded as the designer added ready-to-wear, menswear and accessories lines.
