Michael Kors Buys Versace for $2.2 Billion

Photo: versace_official/instagram | Kevin Tachman

In a move that has many in and out of the fashion industry talking, American company Michael Kors Holdings Ltd. is set to purchase the Italian company Gianni Versace SpA for 1.83 billion euros ($2.2 billion).

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“The acquisition of Versace is an important milestone for our group,” Michael Kors chief executive officer John Idol said in a statement. “We are committed to investing in its growth.”

Michael Kors is looking to more than double Versace‘s sales to 2 billion annually. To do this, they are planning to add around 100 stores, tallying the Versace boutique count to around 300 globally, and they are intending to increase Versace’s online presence. And, much like Coach did when it began to snap up brands like Stuart Weitzman and Kate Spade, making its portfolio aspirations known, Michael Kors Holdings Ltd. is going to rename itself as Capri Holdings Ltd..

We will be talking about this over coffee for weeks to come…

Read more at bloomberg.com.