MICHAEL KORS SEALS THE DEAL WITH VERSACE
- By Ed Lorenzo
- 6 years ago in FASHION NEWS
- No Comments
The deal has been confirmed, Michael Kors is going high end by acquiring Versace and changing its name to Capri Holdings.
Michael Kors Holdings LTD and Versace deal has been confirmed, with an approximate enterprise value of $2.12 billion USD, including debt, providing Kors a launching pad into the exclusive European luxury market, and putting most of the high-end fashion brands in the hands of the budding U.S based conglomerate.
The announcement was made on Tuesday, September 25 and the deal is worth 2.5 times more than the brand’s current revenue and 22 times more than its earnings before interest, taxes, depreciation, and amortization (EBITDA).
The deal also marks one of the first times an American company has cracked the code of high-end luxury fashion which started when he bought luxury shoe brand Jimmy Choo for $1.2 billion, and is widely seen as a move into building a portfolio to rival LVMH (Louis Vuitton, Fendi, and Givenchy) and Kering (Gucci, Balenciaga, and Saint Laurent).
Although Michael Kors, who is the creative director of the brand, handled high-end fashion brands, his namesake brand is best known for classic, preppy sportswear, and affordable handbags, and with this latest acquisition of Versace, things look more extravagant and elaborate than the usual.
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Ed Lorenzo
Edryan Lorenzo, a PR and Marketing practitioner with 13 years of solid experience in the industry of lifestyle, fashion, and e-commerce. I'm into visual arts which includes photography, painting, and sketching. During my free time, I'd prefer to travel to keep my self fueled by different cultures and information. Follow me on Instagram and Twitter at @edryanlorenzo.
