The U.S handbag maker plans to increase the sales of Versace to $2 billion annually, expand the stores’ number from 200 to 300 globally, and improve e-commerce development. Michael Kors will also rename itself to Capri Holdings Ltd.
“The acquisition of Versace is an important milestone for our group,” Chief Executive Officer of Michael Kors, John Idol said in a statement. “We are committed to investing in its growth.”
The private equity firm Blackstone, who bought 20% stake of Versace in 2014 will sell its holdings. On the other hand, Donatella will “continue to lead the company’s creative vision,” said Michael Kors chief executive John Idol.
Creative director Donatella who run the company since 1997 called the acquisition as a “very exciting moment for Versace” in a statement.
“We believe that being part of this group is essential to Versace’s long-term success. This is the perfect time for our company, which puts creativity and innovation at the core of all of its actions, to grow,” she added.
The U.S handbag maker has been expanding his luxury brands to keep pace with his rivals like Louis Vuitton. Just last year, the Michael Kors bought luxury British shoe brand Jimmy Choo for $1.2 billion.
Michael Kors and Donatella Versace formed a harmonious relationship together as fashion brands. Now that the two will join forces together, the two companies will become a powerhouse with bold and glamorous Italian designs and all-American ready-to-wear collections all at once.