Versace has been purchased by Michael Kors in a deal worth $2.1 billion.
The luxury Italian fashion house is set to be taken by the US fashion brand, however designer Donatella Versace is set to continue to “lead the creative vision”.
Donatella took the helm following the assassination of her brother Gianni Versace back in 1997.
She has hailed the takeover as a “very exciting moment” which will “allow Versace to reach its full potential”.
John D. Idol, Chairman and Chief Executive Officer of Michael Kors Holdings also commented:
“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 Versace will grow to over US$2.0 billion in revenues.”
Mr. Idol added: “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.”
However, the deal has been met with mixed reception by fans of the luxe brand, who concerned this may water down the appeal of Versace clothes.
Last year Michael Kors acquired shoe designer Jimmy Choo in a £896 million deal.
Following the recently announced acquisition, Michael Kors Holdings have also announced their renaming as Capri Holdings Limited to reflect its expansion into the luxury market.
According to a company statement, the new name was inspired by ‘the fabled island which has long been recognized as an iconic, glamorous and luxury destination.’
‘The island’s spectacular three rock formation, formed over 200 million years ago, is symbolic of the timeless heritage and strong foundation that is at the core of each of the three founder-led brands in our global fashion luxury group.’, the statement added.
Shares in Michael Kors Holdings (NYSE:KORS) are currently trading -8.21 percent as of 13.00PM (GMT).