Michael Kors is close to acquiring Versace, an iconic Italian luxury designer, for $2 billion, Bloomberg reports.
Handbag maker Michael Kors is close to acquiring the iconic Italian luxury designer Versace, according to a Bloomberg report.
The deal, which values Versace at about $2 billion, may come as early as this week, and will allow the Versace family to maintain a role in the company, the report said. Meanwhile, the private-equity firm Blackstone, which owns 20% of Versace, is planning to sell its stake in the deal, Bloomberg said, citing a source familiar with the situation.
The acquisition, if it happens, will enhance Michael Kors’ step to expand beyond its namesake brand. Last year, the US retailer acquired luxury shoemaker Jimmy Choo for $1.2 billion.
Versace, run by Donatella Versace and her brother Santo Versace, posted revenue of 686 million euros and returned to profit in 2017, said Bloomberg, citing figures provided by the company.
Michael Kors shares are down less than 1% on the news ahead of Monday’s opening bell. They are up 13% this year.
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