Michael Kors to buy Versace for $2.2 billion

Michael Kors has agreed to purchase Gianni Versace for $2.12 billion to continue efforts to expand into global luxury fashion.

Once the deal is finalized, Michael Kors Holdings will change its name Capri Holdings. The Versace family will become shareholders in Capri, according to a company statement.

“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,” said John D. Idol, chairman and CEO of Michael Kors.

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The company plans to grow the Versace brand to over $2 billion in revenues and increase the global retail footprint to 200 or 300 stores, along with increase e-commerce.

Michael Kors handbags, while considered luxury, generally cost less than $500 as opposed to Versace’s starting cost of $1500.

There is a Michael Kors Outlet in Monroe, along with stores in Cincinnati and Columbus. The bags are also sold at high-end department stores like Macy’s and Dilliards.

Some Versace products, but not bags, are sold at Macy’s.


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