Michael Kors makes high-end fashion statement with €1.83bn Versace buy

Michael Kors Reaches Deal to Buy Italian Fashion House Versace

The 40-year-old fashion house, founded by Gianni Versace, celebrates extravagance with its baroque designs, filling runway shows and red carpets with brash prints and vibrant color.

The management team would continue to be led by CEO Jonathan Akeryod, explained Kors, adding that Donatella, her daughter, Allegra, and Santo would become shareholders in Capri Holdings.

In a statement by Michael Kors chief executive, John Idol, he said Donatella will continue to lead Versace's "creative vision", meaning she will stay on to oversee the label.

The deal, first reported by Italian daily Il Corriere della Sera last week, sees the Versace family sell its 80 per cent stake and United States private equity firm Blackstone the remaining 20 per cent which it acquired in 2014.

Versace fans used all kinds of colorful comparisons to criticise the sale of the Iconic Italian fashion brand sale to Michael Kors, taking to social media to mourn what they saw as the brand's sullied legacy.

The bet on Versace comes as the USA group looks to refresh the more downmarket image of the Michael Kors brand and recover some of its pricing power. Kors will rename his company along with Versace as Capri Holdings. The size of the company will provide Versace with a more global reach, especially in Europe and Asia, he said.

The family will also receive 150 million euros of the purchase price in shares of Capri Holdings.

The deal is expected to close in the fiscal fourth quarter.

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The Reds lost the Dutchman to an injury 10 minutes into the second half, with the nature of the incident unclear at the time . Goal difference means the Saints have dropped to 14th beneath their last opponents Brighton who are yet to play this weekend.

Budding conglomerates like Michael Kors have been trying to make inroads into an industry dominated by European players such as Louis Vuitton-owner LVMH and Kering.

Michael Kors, best known for its bags, watches and perfume, said it planned to grow the number of Versace stores worldwide by 50 percent to 300, and expand accessories and footwear from 35 to 60 percent of revenues.

Ms Versace said: "This is a very exciting moment for Versace".

Versace is going through some changes.

Versace does not disclose its financial details, but documents deposited with the Italian chamber of commerce show that a year ago it posted sales of 668 million euros and earnings before interest, tax, depreciation and appreciation (EBITDA) of 45 million euros.

Michael Kors has been undergoing a revitalization with its new multibrand structure in place, after years of heavy discounting and strong competition took a toll on the business.

Versace is the latest Made-in-Italy name to be snapped up by a foreign company.

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