Michael Kors Holdings Ltd. has acquired Gianni Versace SpA for $2.12 billion, with the proviso that Donatella Versace should maintain her ties with the Italian luxury brand as head of its creative vision.
At the helm is Michael Kors chief executive officer John D. Idol, who claims that Kors’ acquisition of Versace will increase the Italian fashion house’s revenue to over $2 billion.
“We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth,” Idol said in a statement. “With the full resources of our group, we believe that Versace will grow to over $2 billion in revenues. We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth.” Kors also acquired well-known footwear brand Jimmy Choo last year.
Donatella said the American company’s acquisition of her late brother’s company is “essential to Versace’s long-term success,” AFP reports.
Idol’s plans for Versace include increasing its outlets by 50% and augmenting the revenue of the footwear and accessories category to 60%. Versace CEO Jonathan Akeroyd will continue his role as CEO for about two years, working with Donatella and Versace’s design and management teams, Fashionista said. “[The] focus has been on leveraging the company’s heritage and strong brand recognition worldwide,” Akeroyd said. Blackstone Group, which owns 20 percent of Versace, is reportedly selling its holding.
“We are all very excited to join a group led by John Idol, whom I have always admired as a visionary as well as a strong and passionate leader,” said Donatella in a statement. “My passion has never been stronger. This is the perfect time for our company, which puts creativity and innovation at the core of all of its actions.”
While we wait to see what the new Kors-owned brand has in store, check out the Versace Spring 2019 collection, which showed at Milan Fashion Week on September 21.