US handbag and clothing brand Michael Kors, which has changed its name to Capri Holdings, completed the acquisition of Italian fashion house Versace for a total enterprise value of $2.12bn.
Michael Kors entered into advanced talks to acquire the Italian fashion brand in September last year.
The company funded the transaction through a combination of cash on hand, drawings under its revolving credit facility, and bank term loans.
Capri Holdings chairman and CEO John Idol said: “With the acquisition of Versace, we have now created one of the leading global fashion luxury groups in the world.
“Versace has long been recognised 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 deal is expected to expand Michael Kors group by adding three fashion brands, create opportunities to increase the group’s revenues to $8bn in the future, and increase its presence across the Americas, Europe and Asia.
In addition, the Versace family reinvested around €150m of the cash received through the transaction in exchange for around 2.4 million ordinary shares of Michael Kors.
Michael Kors offers a range of fashion luxury products including women’s and men’s accessories, footwear and ready-to-wear, watches, jewellery, eyewear and fragrances.