Michael Kors buys Versace for $2.1 billion

Michael Kors has said that it has agreed to buy luxury brand Versace, AFP is reporting.

Earlier this week, it was reported that Versace was going on sale.

In a statement released on Tuesday, Michael Kors’ CEO John D. Idol said it bought Versace for 1.83 billion euros ($2.1 billion).

“We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth.

With the full resources of our group, we believe that Versace will grow to over $2.0 billion in revenues.

We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth,” Idol’s statement said.

The takeover was “essential to Versace’s long-term success,” Donatella Versace, artistic director and vice-president of Versace said.

“We are all very excited to join a group led by John Idol, whom I have always admired as a visionary as well as a strong and passionate leader,” she added.

Michael Kors, best known for bags, watches and perfume, bought luxury shoemaker Jimmy Choo in 2017 for $1.2 billion.