Michael Kors agrees to buy Versace for €1.83 billion

Global fashion brand Michael Kors has agreed to buy Italian luxury label Versace for €1.83 billion. (AFP)
Updated 25 September 2018
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Michael Kors agrees to buy Versace for €1.83 billion

MILAN: US fashion group Michael Kors has agreed to buy Versace in a deal valuing the revered designer at $2 billion including debt, the companies said on Tuesday, making it the latest Italian brand to fall into foreign hands.
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 stiletto-heel maker Jimmy Choo for $1.2 billion last year.
Versace, known for its bold and glamorous designs and its Medusa head logo, was 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.
“We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth,” John Idol, chairman and CEO of Michael Kors said.
As part of the deal, Michael Kors agreed to buy all of Versace’s outstanding shares for a total enterprise value of €1.83 billion ($2.2 billion), to be funded in cash, debt and shares in Michael Kors Holding Ltd, which will be renamed Capri Holdings Ltd.
US private equity firm Blackstone, which bought 20 percent of Versace back in 2014, will fully exit its investment.
The Versace family, which currently owns 80 percent of the fashion house via a holding company called Givi, will receive €150 million of the purchase price in Capri shares.
“We believe that being part of this group is essential to Versace’s long-term success. My passion has never been stronger,” said Donatella Versace, sister of the company’s late founder, and artistic director and vice president of the Milan-based group.
After the deal, Versace CEO Jonathan Akeroyd will remain at the helm of the company, while Donatella Versace will “continue to lead the company’s creative vision,” Idol added.
The deal is expected to close in the fourth fiscal quarter, subject to regulatory approvals.
Michael Kors said it plans to grow Versace’s global sales to $2 billion globally, boost its retail footprint to 300 stores from around 200 at present and accelerate its e-commerce strategy. It also plans to raise the share of higher-margin accessories and footwear to 60 percent of sales from 35 percent.
Versace does not disclose its financial details, but documents deposited with the Italian chamber of commerce show that last year it posted sales of €668 million and earnings before interest, tax, depreciation and appreciation of €45 million.


Priyanka Chopra, Nick Jonas enjoy mini honeymoon in Oman

Updated 12 December 2018
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Priyanka Chopra, Nick Jonas enjoy mini honeymoon in Oman

DUBAI: Actress Priyanka Chopra and her new husband Nick Jonas reportedly escaped to Oman for a quick break this week after their headline-making nuptials in India.
The Bollywood star and US singer tied the knot in an extravagant wedding ceremony in the Umaid Bhavan Palace in the Indian city of Jodhpur in early December — a multiple-day celebration that took the international media by storm, with newspapers around the world reporting on the happy occasion.
The newly-married couple then took a short secret trip to Oman, according to media reports.
The newlyweds seem to have enjoyed the short honeymoon before their Dec. 20 wedding reception for Bollywood guests in Mumbai.
They shared snaps from their Oman holiday on Instagram, including one photo the bride captioned, “Marital bliss they say.”

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Marital bliss they say..

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The photo featured a makeup-free Chopra cozied up to her new husband, with the open sea and a mountain range visible in the distance.
The couple married in both Christian and Hindu wedding ceremonies, with the bride, groom and other members of the wedding party wearing outfits designed by Ralph Lauren for the former.
The Christian ceremony was officiated by the groom’s father, Paul Kevin Jonas, People magazine reported.
The 36-year-old star and fashion icon chose a stunning red outfit by Indian designer to the stars Sabyasachi Mukherji for the Hindu ceremony.
In an interview published in People magazine, the couple expressed their happiness about tying the knot.
“It was all tears. All tears. I could not hold it in. I think I was nervous and scared … But as soon as the curtains opened and I saw his face it was just like everything settled and I knew I was making the best decision of my life,” Chopra said.
Chopra, who headlined three seasons of the ABC crime drama “Quantico,” is one of Bollywood’s biggest female leads with acting credits in several big-ticket films.
Jonas, 26, and his brothers Kevin and Joe formed a band, The Jonas Brothers, in 2005 and soared to fame as members of Disney’s stable of teenage stars. The band split up in 2013.