Michael Kors acquires Versace, renames to Capri Holdings Ltd
October 12, 2018: As you already know by now, Michael Kors Holdings Limited, a global fashion luxury group, is taking over the Italian luxury fashion house Gianni Versace S.p.A. for a total enterprise value of Euro 1.83 billion or approximately US$ 2.12 billion.
John D. Idol, Chairman and Chief Executive Officer of Michael Kors Holdings Limited, said, “The acquisition of Versace is an important milestone for our group...We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth. With the full resources of our group, we believe that Versace will grow to over US$2.0 billion in revenues. 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.”
Mr. Idol also confirmed that Donatella Versace would continue to hold the Creative Director position at the luxury fashion house.
The group also announced that they are now taking a new name - Capri Holdings Limited (NYSE: CPRI). The name is inspired by the island of Capri, near Italy, which has long been recognized as an iconic, glamorous and luxury destination. As per the company’s statement, the island’s spectacular three rock formation, formed over 200 million years ago, is symbolic of the timeless heritage and strong foundation that is at the core of each of the three founder-led brands in the global fashion luxury group.
As part the Group’s long term strategy for Versace, initiatives include increasing the brand’s global retail footprint from approximately 200 to 300 stores, accelerating its e-commerce and omni-channel development, and expanding its men’s and women’s accessories and footwear from 35% to 60% of revenues.
The acquisition, in turn, will help Capri Holdings to diversify largely in Europe (from 23% to 24%) and Asia (from 11% to 19%).