The Courier & Advertiser (Perth and Perthshire Edition)
Luxury shoe brand Jimmy Choo sold for £896 million
FASHION: Design house Michael Kors moves to snap up footwear brand favoured by style icons
Luxury shoe brand Jimmy Choo is to be acquired by US fashion brand Michael Kors in an £896 million deal.
London-listed Jimmy Choo put itself up for sale as part of a strategic review in April and yesterday Michael Kors said it is “the ideal partner” for the firm.
The group said it will support the growth of Jimmy Choo, adding the shoe firm will operate under its existing management team, including CEO Pierre Denis.
Under the terms of the deal, Jimmy Choo shareholders will receive 230p in cash for each share, a premium of 36.5% on the firm’s share price on April 21.
John Idol, chairman and chief executive of Michael Kors, said: “We believe that Jimmy Choo is poised for meaningful growth in the future and we are committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.”
In March, Jimmy Choo cheered record revenues and profits thanks to a boost from the Brexit-hit pound and strong sales across Asia.
Annual revenues rose 15% to £364 million in the year to the end of December, while earnings lifted 16% to £59m.
Jimmy Choo counts Jennifer Lopez, the Duchess of Cambridge and Beyoncé among its fans.
Chairman Peter Harf said: “A combination with Michael Kors will allow Jimmy Choo to embark on its next phase of growth and provide opportunities for the benefit of Jimmy Choo customers, employees, shareholders and other stakeholders.”