Michael David Kors, American fashion designer, and best known for bags, watches and perfume, has bought Italian luxury fashion brand Versace for $2.1bn including the debt of the company.
In a statement released on Tuesday, Michael Kors’ CEO John D. Idol said it bought Versace for 1.83 billion euros ($2.1 billion).
“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 $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,” Idol said.
The creative director, Donatella Versace, who ran Versace since the 1997 murder of her brother Gianni, called the sale a “very exciting moment” and “allow Versace to reach its full potential”.
Donatella, her brother Santo and daughter Allegra will also stay on as shareholders in the company. Versace’s management team will continue to be led by its CEO, Jonathan Akeroyd.
Michael David Kors plans to grow Versace to $2 billion in revenue globally and increase its retail footprint from about 200 to 300 stores.