Michael Kors firm takes over Versace
Capri Holdings Limited, a global fashion luxury group, announced today that it has changed its name from Michael Kors Holdings Limited (NYSE: KORS), and beginning last Jan. 2, its New York Stock Exchange ticker symbol was CPRI. The company also announced that it has completed its acquisition of Versace.
John D. Idol, chair and chief executive officer of Capri Holdings, said, “With the acquisition of Versace, we have now created one of the leading global fashion luxury groups in the world. The new name for our group, Capri Holdings, is inspired by the fabled island which has long been recognized as an iconic, glamorous and luxury destination.”
Idol added, “Versace has long been recognized as one of the world’s leading fashion luxury houses, and is synonymous with Italian glamour and style. We are thrilled that the house of Versace is now part of the Capri Holdings family of luxury brands. We look forward to working with chief creative officer Donatella Versace, chief executive officer Jonathan Akeroyd, and their incredibly talented team to continue to drive Versace’s growth and success globally.”
The acquisition of Versace is expected to deliver a number of benefits for Capri Holdings. It will expand the global group to include three iconic founder-led brands defined by fashion luxury products with a reputation for world-class design and innovation. There will be an opportunity to help grow the group’s revenues to $8 billion in the long term.
It will grow Versace to $2 billion in revenues, Jimmy Choo to $1 billion in revenues, and Michael Kors to $5 billion in revenues. The move will also diversify geographic revenues, increasing exposure to a growing Asia region.
As previously announced, Capri Holdings acquired Versace for a total enterprise value of 1.83 billion euro (approximately $2.12 billion on the date of announcement). The cash portion of the purchase price was funded by a combination of cash on hand, drawings under its revolving credit facility, and bank term loans. Concurrently with the closing, the Versace family reinvested Euro 150 million of the cash received for their interests in Versace in exchange for 2,395,170 shares of Capri Holdings.