Michael Kors buys Versace in £1.64bn deal

Michael Kors is buying the Italian fashion house Gianni Versace in a £1.64bn ($2.1bn) deal. Versace is a family-owned European brand, founded by the designer Gianni Versace 40 years ago and built its reputation by dressing some of the world’s most glamorous women including Princes Diana, Demi Moore and Elizabeth Hurley, is being snapped by a global fashion conglomerate.

Michael Kors bought London shoremaker Jimmy Choo for £900m and confirmed would form a new company called Capri Holdings, named after a favourite holiday island.

Gianni Versace’s niece Allegra Versace Beck (32) is holding stake o 40% worth £654m (€732m). Allegra’s mother and Gianni’s sister Donatella Versace (62), holds 16 per cent and Gianni’s older brother Santo owns 24 per cent.

The family who inherited the company after the murder of Versace outside his Miami mansion in 1997, will maintain a €150m stake in Capri Holdings. Blackstone, the US private equity firm which bought 20 per cent of Versacein 2014 will sell all of its holdings.

John Idol, chairman and CEO of Michael Kors said “buying Versace was an important milestone for the US company and that creating a “family of luxury brands” would deliver shareholders “multiple years of revenue and earning (profits) growth”.