Michael Kors has officially taken over Versace.
The popular designer acquired control of the Italian fashion house for $2.1 billion, announced on Tuesday in a press release. John D Idol, Chairman and Chief Executive Officer of Michael Kors Holdings Limited called the deal ‘an important milestone’.
As part of the deal, Michael Kors Holdings Limited will be renamed Capri Holdings Limited (CPRI).
Michael Kors confirmed the $2.1b takeover of Versace in a press release issued on Tuesday
Donatella Versace will stay on as the company's creative director after Michael Kors purchased the brand
Idol said of the purchase: ‘The acquisition of Versace is an important milestone for our group. Versace was founded in 1978. For over 40 years, Versace has represented the epitome of Italian fashion luxury, a testament to the brand’s timeless heritage.
‘We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth. With the full resources of our group, we believe that the strength of Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth.’
For her part, Versace’s long-time owner and creative director Donatella Versace said: ‘This is a very exciting moment for Versace.
‘It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra. I am proud that Versace remains very strong in both fashion and modern culture. Versace is not only synonymous with its iconic and unmistakable style, but with being inclusive and embracing of diversity, as well as empowering people to express themselves.’
Michael, 59, has big plans for the company already. He intends to open 100 additional Versace outlets, focus in on accessories and footwear and ultimately double turnover to about $2 billion.
The deal will undoubtedly increase Versace’s value, but it’s also expected to make Michael significantly richer.
How much is Michael Kors worth? Find out all that and more below.
Who is Michael Kors?
Michael Kors — born Karl Anderson Jr on August 9, 1959 in Merrick, New York — is a well-known American fashion designer. His self-titled brand launched as a women’s label in 1981.
He launched KORS Michael Kors in 1990, but was forced to close it temporarily after filing for Chapter 11 bankruptcy in 1993. He got back on his feet and launched a cheaper line in 1997.
At the same time, Michael was named the first women’s ready-to-wear designer at Celine. He left in 2003.
As of 2016, Michael Kors had more than 770 stores around the world. According to the company’s website, there are now 726 Michael Kors locations worldwide.
In his personal life, Michael married partner Lance Le Pere in August 2011. The ceremony took place in Southampton, New York.
Michael Kors net worth
According to Celebrity Net Worth, Michael Kors’s net worth is about $1 billion. He’s made the majority of his money in the fashion industry though he’s had other ventures.
For example, he was briefly a judge on Project Runway.
As for the value of his brand, Michael Kors is said to have brought in $839.1 million in 2016. According to a press release about the recent purchase of Versace, the brand is hopeful that the overall revenue of their umbrella company will increase to $8 billion in the long run.
Michael Kors stock
Michael Kors (KORS) stock is currently selling for about $66.43 per share. It’s at a .42 per cent decline.
Michael Kors buys Versace
Michael Kors confirmed the purchase of Versace on Tuesday in a press release. The fashion mogul paid $2.1 billion to take over the company.
Donatella Versace, who took over the company in 1997 after her brother Gianni Versace was murdered, called the acquisition ‘exciting’ adding that it will ‘allow Versace to reach its full potential’.
According to the press release from Michael Kors, Donatella, 63, will stay on as creative director.
CEO John Idol said: ‘Donatella’s iconic style is at the heart of the design aesthetic of Versace. She will continue to lead the company’s creative vision.
‘I am thrilled to have the opportunity to work with Donatella on Versace’s next chapter of growth.’
Donatella isn’t the only Versace staffer staying on during the transition.
According to John: ‘Versace’s management team will continue to be led by Chief Executive Officer, Jonathan Akeroyd, who has been an instrumental partner to Donatella in driving growth and success for Versace worldwide.
‘He and Donatella have assembled strong senior management and design teams that will continue to lead Versace into its next chapter. We are extremely fortunate to be able to acquire such an extraordinary brand with an incredibly talented team.’
Michael’s strategic plan for long-term growth includes bringing in $2 billion in revenue globally, enhancing marketing, adding 100 stores and a stronger focus on accessories and shoes.
Donatella Versace net worth
Celebrity Net Worth estimated that Donatella Versace’s net worth is about $300 million. She’s made the majority of her fortune in the fashion industry.
She was named creative director at Versace in 1997 after her brother Gianni Versace was killed.
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I'm a seasoned fashion industry analyst and enthusiast, specializing in mergers and acquisitions within the luxury fashion sector. My comprehensive knowledge extends to the recent takeover of Versace by Michael Kors, a monumental event in the fashion world.
In the acquisition announcement, Michael Kors Holdings Limited, led by Chairman and CEO John D Idol, disclosed the purchase of Versace for a staggering $2.1 billion. As part of this deal, the holding company will undergo a name change to Capri Holdings Limited (CPRI). Donatella Versace, the creative director, is set to remain in her role, ensuring continuity in the brand's iconic style.
The strategic significance of this acquisition is emphasized by Idol, who views it as a crucial milestone for the group. With an established history dating back to 1978, Versace symbolizes Italian fashion luxury, embodying a timeless heritage. The plan is to leverage the resources of Michael Kors Holdings Limited to drive growth, capitalizing on the strengths of Michael Kors and Jimmy Choo brands alongside the newly acquired Versace.
Michael Kors, the man behind the eponymous brand, is already outlining ambitious plans for Versace. These include opening 100 additional Versace outlets, a focused approach on accessories and footwear, and a goal to double the turnover to approximately $2 billion.
The financial implications are significant, not just for Versace but also for Michael Kors personally. Michael Kors, born Karl Anderson Jr., is a renowned American fashion designer with a self-titled brand that originated in 1981. Despite facing challenges, such as filing for Chapter 11 bankruptcy in 1993, he successfully revived his brand and expanded globally. As of 2016, Michael Kors boasted over 770 stores worldwide.
As for Michael Kors's net worth, Celebrity Net Worth estimates it to be around $1 billion, primarily amassed through his ventures in the fashion industry. His brand's value was highlighted by generating $839.1 million in 2016. The recent acquisition of Versace is anticipated to contribute to the overall revenue of the umbrella company, aiming for an impressive $8 billion in the long run.
Examining Michael Kors's stock (KORS) reveals a current selling price of approximately $66.43 per share, indicating a slight decline. This financial snapshot provides insight into the market's response to the Versace acquisition.
Donatella Versace, with a net worth of around $300 million, has played a pivotal role in Versace's success since taking over in 1997 after her brother Gianni Versace's tragic demise. Her continued involvement as the creative director ensures the preservation of Versace's iconic style.
In essence, the acquisition of Versace by Michael Kors marks a transformative moment in the fashion industry, blending the legacies of two iconic brands and setting the stage for new heights of luxury and growth.
