US fashion group Michael Kors Holdings has agreed to acquire Versace in a deal worth US$2.1 billion that will likely see the iconic Italian label increase its shoe and accessories offerings as well as its presence in Asia.
Michael Kors Holdings, now renamed Capri Holdings, also owns the Michael Kors fashion brand and shoe label Jimmy Choo.
Versace was founded in 1978 by Gianni Versace, who was murdered in 1997. His sister Donatella has been at the reins since then, and she will continue to lead the company’s creative vision.
“This is a very exciting moment for Versace,” says Donatella in the Press release. “It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra (and we) recognize that this next step will allow Versace to reach its full potential.”
Versace’s new owner has pledged to grow the brand’s revenue to US$2 billion, add the number of stores globally from approximately 200 to 300 and increase its shoe and accessories revenue from 35 per cent currently to 65 per cent.
While Versace’s presence in Europe will remain little changed, the company plans to reduce Versace’s geographic portfolio in the Americas while ramping up its business in Asia from 11 per cent to 19 per cent.