Fashion

UPDATE: Michael Kors Buys Versace for $2.12 Billion USD

The news is confirmed by both brands.

17.2K

UPDATE: Michael Kors Buys Versace for $2.12 Billion USD

The news is confirmed by both brands.

UPDATE: Michael Kors has confirmed its $2.12 billion USD purchase of Versace. The announcement was made on the morning of September 25 according to Business of Fashion. The deal was valued at 2.5 times Versace’s current revenue and 22 times more than its earnings before interest, taxes, depreciation and amortisation (EBITDA).

Dontella Versace and Kors CEO John Idol later discussed the move in a call, maintaining that Versace will stay a luxury brand, “going the opposite direction” from the Michael Kors brand. Donatella explained that her and Idol “share the same vision, the same passion; John loves luxury, and he really cares about keeping Versace a luxury brand.”

According to reports in Bloomberg, the plan is to turn Versace into a $2 billion USD company.

This purchase falls in line with Kors’ plan to build a portfolio of high-end luxury brands. Following the acquisition of Jimmy Choo for $1.2 billion USD, Kors is now in the running to become one of the most profitable fashion giants rivaling LVMH and Kering.

According to recent reports, Versace is set to be sold to another fashion giant. Italian newspaper Courier della Serra released a story sharing that Donatella Versace called a staff meeting last week to prep the company for the official announcement. Versace declined to give a comment on the proceedings.

Michael Kors and jewelry company Tiffany & Co. are the top two buying contenders for the Italian house. Chief executive Jonathan Akeroyd shared earlier this year with Reuters that there is no rush for Versace to enter the public trading sphere. In 2014, the brand sold a 20-percent stake to a private U.S. equity group Blackstone.

Stay tuned for more news and in the meantime check out Versace’s Spring/Summer 2019 presentation debuted in Milan.

Read Full Article
Text By
Share this article

What to Read Next

Here Are All the Shows and Movies Coming to Netflix This October
Culture

Here Are All the Shows and Movies Coming to Netflix This October

From ‘YG Future Strategy Office’ to new episodes of ‘Terrace House.’

Virgil Abloh Teases His New Nike Sneaker Ahead of Off-White™'s SS19 Show
Footwear

Virgil Abloh Teases His New Nike Sneaker Ahead of Off-White™'s SS19 Show

The silhouette features track spikes on the bottom.

Karleen Roy on How She Founded A Luxury Boutique Agency for Celebrity Events
Culture 

Karleen Roy on How She Founded A Luxury Boutique Agency for Celebrity Events

The Vanity Group founder also shares how she brainstorms and more.

BTS Hilariously Teaches Jimmy Fallon How to Do the "IDOL" Dance
Culture

BTS Hilariously Teaches Jimmy Fallon How to Do the "IDOL" Dance

The group also sat down with the late night TV host in an interview.

Duckie Thot Is Named as L'Oréal's Newest Ambassador
Beauty

Duckie Thot Is Named as L'Oréal's Newest Ambassador

The supermodel is set to make her debut soon.

Fenty Beauty's New Peachy Nude Stunna Lip Paint Just Stole Our Heart
Beauty

Fenty Beauty's New Peachy Nude Stunna Lip Paint Just Stole Our Heart

“UNBUTTON” has arrived.

G-Shock's New S Series Watches Are the Perfect Rose Gold Accessory
Fashion 

G-Shock's New S Series Watches Are the Perfect Rose Gold Accessory

Presented by G-Shock
Add some pink metal to your look.

Gucci's Golden Double G Logo Necklace Is a Luxe Statement Piece
Fashion

Gucci's Golden Double G Logo Necklace Is a Luxe Statement Piece

So fancy.

Fujifilm's New Instax Square SQ20 Camera Lets You Choose What You Print
Culture

Fujifilm's New Instax Square SQ20 Camera Lets You Choose What You Print

The perfect holiday gift.

Here's Every Item in Gosha Rubchinskiy's Final Fall/Winter 2018 Drop
Fashion

Here's Every Item in Gosha Rubchinskiy's Final Fall/Winter 2018 Drop

The last release from the brand.

More ▾
 

Looks like you’re using an ad-blocker

We charge advertisers instead of our readers. Support us by whitelisting our site.

Whitelist Us

How to Whitelist Us

screenshot
  1. Click the AdBlock icon in the browser extension area in the upper right-hand corner.
  2. Under “Pause on this site” click “Always”.
  3. Refresh the page or click the button below to continue.
screenshot
  1. Click the AdBlock Plus icon in the browser extension area in the upper right-hand corner.
  2. Block ads on – This website” switch off the toggle to turn it from blue to gray.
  3. Refresh the page or click the button below to continue.
screenshot
  1. Click the AdBlocker Ultimate icon in the browser extension area in the upper right-hand corner.
  2. Switch off the toggle to turn it from “Enabled on this site” to “Disabled on this site”.
  3. Refresh the page or click the button below to continue.
screenshot
  1. Click the Ghostery icon in the browser extension area in the upper right-hand corner.
  2. Click on the “Ad-Blocking” button at the bottom. It will turn gray and the text above will go from “ON” to “OFF”.
  3. Refresh the page or click the button below to continue.
screenshot
  1. Click the UBlock Origin icon in the browser extension area in the upper right-hand corner.
  2. Click on the large blue power icon at the top.
  3. When it turns gray, click the refresh icon that has appeared next to it or click the button below to continue.
screenshot
  1. Click the icon of the ad-blocker extension installed on your browser.You’ll usually find this icon in the upper right-hand corner of your screen. You may have more than one ad-blocker installed.
  2. Follow the instructions for disabling the ad blocker on the site you’re viewing.You may have to select a menu option or click a button.
  3. Refresh the page or click the button below to continue.