Michael Kors has put one more stone to build his international empire of luxury brands.The American group has closed an agreement to acquire the Italian brand Versace for 1,830 million euros (2,120 million dollars).
As part of its strategy to become a luxury conglomerate, Michael Kors has taken advantage of the time to rename as Capri Holdings.
The American firm has its own plans and wants to become a reference in the luxury sector.According to him he assured, part of that plan goes on increasing annual sales from Versace to 2,000 million dollars, expanding his network of physical establishments in a hundred and accelerating the development of electronic commerce.
With this operation, Versace passes in full to Michael Kors;That is, the American company has made all the titles of the Italian brand, not with a participation.Even so, Donatela, Sandro and Allegra, the three members of the Versace family;They will have actions of the parent company, Capri.
"We are committed to investing in its growth," said the CEO of Michael Kors, John Idol, in a statement in which he also assured that this purchase is a great achievement for the US group.
The American group points out that the operation with the Italian brand will help you reach 8,000 million dollars in long -term income and diversify your portfolio, also geographically, reinforcing its presence in Europe and Asia.
In this way, Versace reinforces the positioning in the luxury segment of Michael Kors.Last year the company registered a turnover of 686 million euros and generated benefit.Donatella Versace, current creative director of the firm and sister of the founder Gianni, "will continue to lead the creative vision of the company," Idol said in a statement.
Michael Kors's strategy, which will be called Capri once the agreement is closed, is nothing more than becoming a reference among luxury conglomerates and, a sign of this is not only the purchase of Versace, but the acquisition last yearof Jimmy Choo for 1.2 billion dollars.
With this operation, Michael Kors face its competitor Tapestry (former Coach).Both competitive companies are plunged into a race, since the beginning of last summer, for acquiring luxury brands with which to gain weight their porpholio.
Tapestry snatched him last summer, the purchase of the Kate Spade bag brand, for 2.4 billion dollars, which would join Stuart Weitzmann in his wallet.A few months later, Michael Kors took Jimmy Choo, which has revitalized its multi -brand structure.
However, despite confirming the operation, and announcing the name change, Michael Kors's actions continue the descent path that began yesterday, when the rumors of acquisition began to run.Michael Kors's titles fell more than 8% in two days.
