LONDON--(BUSINESS WIRE)-- Michael Kors Holdings Limited (NYSE:KORS), a global fashion luxury group, announced today that a definitive agreement has been signed to acquire all of the outstanding shares of Italian luxury fashion house Versace. This landmark acquisition marks a significant step in Michael Kors' strategic expansion into the high-end luxury market, solidifying its position as a major player in the global fashion industry. The deal, valued at approximately $2.12 billion, represents a significant investment in Versace's iconic brand and its future growth potential.
This press release will delve into the details of this momentous acquisition, addressing key questions surrounding the ownership of Versace, the implications for both brands, and the future direction of the combined entity. We will explore the history of Versace, the role of Donatella Versace, and the strategic rationale behind Michael Kors' ambitious move.
Who is Versace Owned By?
Prior to the acquisition by Michael Kors Holdings Limited (now Capri Holdings Limited), Versace was primarily owned by the Versace family, with Donatella Versace, Gianni Versace's sister, holding a significant stake and serving as the creative director. Other family members also held shares, although the exact ownership structure was never publicly disclosed in detail. The family-owned structure had been in place since the founding of the brand by Gianni Versace in 1978. This familial connection played a significant role in shaping the brand's identity and creative direction for decades. The acquisition by Michael Kors marked a significant shift, transferring majority ownership to a publicly traded company.
Does Michael Kors Own Versace?
Yes, following the completion of the acquisition in 2018, Michael Kors Holdings Limited (subsequently renamed Capri Holdings Limited) gained complete ownership of Versace. This acquisition brought Versace under the umbrella of a larger fashion conglomerate, providing access to resources and expertise that would help fuel further growth and expansion. The acquisition was a strategic move by Michael Kors to expand its portfolio and compete more effectively in the luxury fashion market.
Michael Kors Versace Acquisition:
The Michael Kors Versace acquisition was a highly significant event in the fashion industry. The deal, announced in September 2018, valued Versace at approximately $2.12 billion. The acquisition was not just a financial transaction; it represented a strategic alignment of two powerful brands with distinct but complementary identities. Michael Kors, known for its accessible luxury and strong brand recognition, gained access to Versace's high-end clientele and iconic brand heritage. Conversely, Versace benefited from Michael Kors' established infrastructure, global distribution network, and financial resources.
The acquisition was driven by several factors. Michael Kors sought to enhance its luxury offerings and compete directly with established luxury conglomerates like LVMH and Kering. Acquiring Versace, a brand with a long history of innovation and a strong reputation for exclusivity, was a key step in achieving this goal. For Versace, the acquisition provided access to capital for expansion, improved operational efficiency, and a broader global reach. The deal signaled a new era for both brands, promising increased growth and opportunities in the competitive luxury market.
Who Owns Versace Company Now?
Currently, Versace is a wholly-owned subsidiary of Capri Holdings Limited. Following the rebranding of Michael Kors Holdings Limited, the parent company now encompasses Michael Kors, Versace, and Jimmy Choo, creating a powerful portfolio of luxury brands. While the Versace family retains some level of involvement, the majority ownership and operational control rest with Capri Holdings Limited. This structure allows for the continued creative direction of Donatella Versace while benefitting from the financial and operational expertise of a larger corporate entity.
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