Michael Kors Has Officially Purchased Versace for Over $2 Billion

American fashion brand Michael Kors Holdings is in acquisition mode and is looking to close a deal to buy Italian fashion house, Versace

American fashion brand Michael Kors Holdings has announced that a definitive agreement has been signed to acquire all of the outstanding shares of Italian luxury fashion house Gianni Versace SpA. The reported details of this deal see Kors purchase Versace for a sizeable $2.35 billion.

According to the people close to the deal, this acquisition will put one of the “glitziest” names in fashion in the hands of an American brand better known for affordable luxury.

John D. Idol, Chairman and Chief Executive Officer of Michael Kors Holdings Limited, said, “The acquisition of Versace is an important milestone for our group.  Versace was founded in 1978.  For over 40 years, Versace has represented the epitome of Italian fashion luxury, a testament to the brand’s timeless heritage.  We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth.”

According to Idol, Donatella Versace will continue to lead the company’s creative vision.

“This is a very exciting moment for Versace,” said Donatella Versace. “It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra. I am proud that Versace remains very strong in both fashion and modern culture.”

According to WWD. In recent years, Versace has not made their sales marks and has essentially been struggling. The brand is overshadowed by Italian rival Gucci who has rapidly become one of the most productive fashion brands as of late.

Source: Wall Street Journal