Yes, you read that correctly! After buying London shoemaker, Jimmy Choo, for $1.2 billion in 2017, Michael Kors has now also bought family-owned European brand, Versace, for $2.12 billion.
The Italian luxury brand was founded in 1978 by Gianni Versace. However, this company has been run by Donatella, Santo and Allegra Versace for the past few decades. Now, it is being taken over by a global fashion conglomerate.
“This is a very exciting moment for Versace. It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra,” Donatella Versace, age 63 told the press. “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.”
She believed that in order for Versace to reach its full potential, it had to be sold.”We believe that being part of this group is essential to Versace’s long-term success,” she stated, “My passion has never been stronger. This is the perfect time for our company, which puts creativity and innovation at the core of all its actions, to grow.”
All three of these Versace’s will be receiving 150 million euros, which is about $177 million worth of shares in this company collaboration. The Versace family has not just taken the money and run, though. Donatella will be putting her marketing and editorial knowledge into effect in maintaining her designer position, leading the company’s creative vision.
CEO of Capri Holdings Limited, John Idol, also had his say in the matter. “The acquisition of Versace is an important milestone for our group. We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth.” He believes that with this expansion, Versace will grow to over $2 billion in revenues.
Additionally, the company is now changing its name to Capri Holdings Limited (named after the favorite holiday island of wealthy fashionistas) and is planning to open over 100 stores!