Luxury group Michal Kors Holdings (NYSE: KORS) has finalized its acquisition of the Versace fashion house and changed the group’s name to Capri Holdings Limited. The company is publicly listed on the New York Stock Exchange under the ticker KORS, but that will soon change to CPRI.
John Idol, Chairman and Chief Executive Officer of Michael Kors Holdings, said in a statement, “With the acquisition of Versace, we have now created one of the leading global fashion luxury groups in the world.” The group’s brand portfolio also includes Michael Kors and Jimmy Choo, the luxury shoemaker made famous by references on “Sex and the City.”
Gianni Versace founded Versace, one of the world’s leading fashion luxury houses, in 1978. His murder 21 years ago threw the family-run business into chaos. His sister Donatella Versace ultimately took over the company and ran it alongside her brother Santo and daughter Allegra.
Michael Kors announced the acquisition of Versace in September 2018. It reportedly paid more than $2.1 billion for the fashion house. As part of the deal, the Versace family shall receive €150 million ($170.9 million) of the purchase price in shares of Capri Holdings.
Versace’s management team will continue to be led by Chief Executive Officer Jonathan Akeroyd. Donatella shall stay on as the brand’s Chief Creative Officer. Michael Kors, who founded the company under his name, remains as creative director of that brand.
The acquisition of Versace is part of a plan to grow the group’s annual revenues to $8 billion, up from the $4.7 billion posted in its most recent fiscal year. Michael Kors has struggled in its two most recent quarters. Its share price has fallen nearly 50 percent since August.