London, Sep 26: Popular Fashion designer Michael Kors is all set to acquire the Italian fashion house ‘Versace’ for $2.1 billion.
Kors dubbed the purchase as a milestone in its expansion plans.
The deal, which would end the independence of one of the last prominent stand-alone fashion brands, is the biggest effort yet by Kors to build an empire, nytimes.com reported.
The fashion tycoon told media that the firm will change its name to Capri Holdings Limited after the deal is concluded.
The Michael Kors brand had its roots in the “middle market” of the luxury sector and relied on outlets and department stores. But mall traffic saw a decline in North America – which is considered as Kors’s biggest market – and shoppers were changing too, increasingly demanding brands at the extreme of the style and price spectrum.
Purchasing Versace, led by artistic director Donatella Versace, is part of the company’s strategy to attract more big spenders and find more loyal customers in European and Asian countries.
Last year, Kors acquired designer Jimmy Choo for 896 million pounds or $1.2 billion at current exchange rates.
“There are very few people you meet and say, ‘I have to work with this person and be a part of their life.’ I had that immediately with Donatella Versace,” stated John Idol, Chief Executive and Chairman, Michael Kors.