Global fashion and luxury accessories retailer Michael Kors Holdings has signed a $1.35bn agreement to acquire footwear and accessories company Jimmy Choo.
Michael Kors noted that the acquisition will enhance its position in the global footwear and accessories segment and strengthen future growth opportunities.
The transaction has received approval from the boards of directors of both companies.
Michael Kors chairman and CEO John Idol said: “We believe that Jimmy Choo is poised for meaningful growth in the future and our company is committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.”
After the deal is completed, Jimmy Choo CEO Pierre Denis and creative director Sandra Choi will be retained in their respective roles.
The agreement will give Michael Kors greater access to Asia and other global markets, as well as have the potential to create long-term operational synergies.
The deal is expected to close in Q4 of the current financial year, subject to customary closing conditions, including the receipt of required regulatory approvals
Last month, Michael Kors announced plans to close between 100 and 125 stores over the next two years, due to declining sales and revenue.
Its total revenue came down 11.2% to $1.06bn from $1.2bn in the fourth quarter of fiscal 2016, while for the fiscal ended 1 April this year, its total revenue decreased 4.6% to $4.49bn from $4.71bn.
Jimmy Choo has a network of more than 150 exclusive stores worldwide. As of 1 April, Michael Kors Holdings operated 827 retail stores, including concessions.
Image: Outside view of the Jimmy Choos boutique at Woodbury Common, New York. Photo: courtesy of Chaosdruid via Wikipedia.