About this Deal
|Michael Kors is going to buy Italian fashion label Gianni Versace for $2.2 billion, bringing the American luxury company closer to becoming an international house of fashion brands.|
Michael Kors wants to double Versace's current annual income and expand the numbers of stores globally up to 300. It also wants to accelerate its e-commerce development.
The company also wants to rename itself from Michael Kors Holdings Ltd. to Capri Holdings Ltd. as it develops its multibrand luxury strategy.
Obtaining Versace is the third billion-dollar acquisition made by Kors or chief competitor Tapestry Inc. since early last summer. Kors purchased Jimmy Choo last year, two months after Coach-owner Tapestry bought Kate Spade.
While Versace boasts a sizable pop culture presence, it has struggled to increase sales and attract new shoppers.
Want to know more? Read the article on MSN.