Michael Kors Acquires Versace: The Facts
After months of rumours, US fashion giants Michael Kors has confirmed the takeover of millennial brand, Versace. Here’s everything you need to know about the exciting new venture.
• The confirmed takeover figure is estimated to be £1.6bn ($2.1bn).
• Donatella Versace will continue to lead Versace’s creative vision despite the takeover.
• Since the acquisition of Versace, Michael Kors Group will be changing their name to Capri Holdings.
• Blackstone Group, who previously bought a 20% stake in Versace four years ago, will sell its holding to Capri Holdings.
• The now Capri Holdings have planned to increase the number of Versace outlets from 200 to 300.
• Capri Holdings also plan on doubling the annual turnover to over $2bn by boosting the percentage of footwear and accessories to 60% of revenue, from its current 35%.
• Although the announcement of the takeover did not go down well with many of Versace’s Italian fans, Donatella believes the move will allow her brand to ‘reach its full potential’.
• Capri Holdings will look to diversify their geographical portfolio to 57% America (from 66%), 24% Europe (from 23%) and 19% Asia (from 11%).
• Capri Holdings now own Michael Kors, Versace and Jimmy Choo.