After obtaining Jimmy Choo last year for $1.2 billion, Micheal Kors is set to buy the Gianni Versace brand for a whopping sum of $2.1 billion.
According to reports from AP news, Michael Kors is changing its name as it seeks to reframe how people in perceive it. Michael Kors will still remain the chief creative director at Kors, but the expanding company will be renamed Capri Holdings Ltd., with $8 billion in projected annual sales. “Versace will be a key engine of growth,” executives said in a conference call on Tuesday.
Also according to Bloomberg, Donatella Versace who holds a 20% stake in the business will stay on as the creative director and the family will become shareholders in the larger business
Micheal Kors is looking to broaden its European horizons by reducing its American based proportion of business from 66% to 57% while its European proportion goes up to 24% from 23%, and its Asian presence from 11% to 19%.
