Versace to be sold to US label Michael Kors for $ 2bn, say reports
London, Sept. 24: US fashion group Michael Kors ( KORS. N) has agreed to take control of Versace in a deal that could value one of Italy’s most prized designers at $ 2 billion, sources familiar with the matter said on Monday.
Budding luxury conglomerates, including Michael Kors’ US rival Tapestry ( TPR. N), owner of Coach and Kate Spade, are trying to make in- roads into an industry still dominated by European players such as Louis Vuitton owner LVMH ( LVMH. PA).
Michael Kors, whose namesake label is best known for its leather handbags, has made no secret of its ambition to grow its portfolio of high- end brands after buying British stilettoheel maker Jimmy Choo for $ 1.2 billion last year.
Versace, known for its bold and glamorous designs and its Medusa head logo, is one of a clutch of family- owned Italian brands cited as attractive targets at a time when the luxury industry is riding high on strong demand from China.
But not all brands have benefited equally, with some struggling to refresh their image or products to capture a younger audience, and some fashion groups are looking to diversify with more labels to face such challenges.
“Bringing brands like these back to centre stage is not as easy as it looks, though,” said Luca Solca, an analyst at Exane BNP Paribas. “Would Michael Kors have what it takes to succeed in this? I wonder. The plan seems ambitious.”