Michael Kors Holdings Ltd. has reached an agreement to buy Versace in a deal valued at $2.12 billion, the companies announced. The companies said Donatella Versace will remain on board as design director following the acquisition, as will Versace CEO Jonathan Akeroyd.
The transaction is expected to close in the company’s fiscal fourth quarter, subject to specific closing conditions. Following completion of the Versace acquisition, Michael Kors Holdings Ltd. will become Capri Holdings Ltd., and own and operate three fashion brands: Michael Kors, Versace and Jimmy Choo.
The acquisition of Versace means the end of the independence of one of fashion’s last standalone brands, and is the second major acquisition in little more than a year for Michael Kors, which announced it was buying Jimmy Choo for $1.2 billion in July 2017. Michael Kors said it intends to grow Versace’s revenues to $2 billion globally, expand its store count from 200 to 300, accelerate ominchannel, and focus on men’s and women’s accessories and footwear.