U.S. retailer Michael Kors (KORS.N) said it has agreed to buy luxury shoemaker Jimmy Choo (CHOO.L) for $1.2 billion, snapping up a British company whose towering stilettos have been made famous by celebrity customers from Princess Diana to Kendall Jenner.
Under the terms of the deal, it will pay a premium of 36.5 percent to buy Jimmy Choo compared with the British firm's share price before it was put up for sale.
Its strong performance stands in contrast to Michael Kors which has lost 65 percent of its market value since 2014 due to fierce competition at the more affordable end of the luxury market and a drop in customers at department stores.
At 1015 GMT, Jimmy Choo shares were up 17 percent at 228.25 pence. The company makes three quarters of its revenue from selling shoes and has a presence across the world, including around 150 company-operated retail stores.