Michael Kors has confirmed that it is set to purchase Italian fashion icon Versace for an estimated $2.12 billion (£1.61 billion).
The newly merged company will see Michal Kors Holdings rebrand to Capri Holdings, and the deal is set to close in the final quarter of 2019, keeping both Michael Kors’ chief executive John D Idol and Versace’s boss Jonathan Akeroyd in their respective roles.
Donatella Versace, sister of the brand’s eponymous founder Gianni and current creative director will also maintain her role.
“This is a very exciting moment for Versace,” Donatella stated.
“I am proud that Versace remains very strong in both fashion and modern culture. Versace is not only synonymous with its iconic and unmistakable style, but with being inclusive and embracing of diversity, as well as empowering people to express themselves.”
“Santo, Allegra and I recognise that this next step will allow Versace to reach its full potential.”
In an announcement today Capri revealed its plans for expanding Versace, aiming to expand its international store network from 200 to 300 stores, while working to expand its ecommerce platforms.
Blackstone Group, which acquired a 20 per cent stake in Versace in 2014, will now offload its holding.
Michael Kors acquired Jimmy Choo for £896 million in July last year, a deal which provided a $172.2 million (£133.87 million) boost to profits in the 12 weeks to the end of June.
Though the newly expanded company will seek to raise the profile of all three brands, Capri will still be dwarfed by luxury conglomerates Kering and LVMH.
Kering’s Gucci brand brought in more revenue than Michael Kors, Jimmy Choo and Versace combined last year.