Michael Kors announced on Tuesday that the company acquired Versace for $2.1 billion. The announcement of Kors purchasing the Italian luxury brand, founded by Gianni Versace in 1978, comes just one day after rumors spread of the potential deal.
Michael Kors says it has plans to grow Versace to $2 billion in annual revenue and add 200-300 new stores worldwide. The company also announced plans to afterward change its name to Capri Holdings following the acquisition.
“We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth,” Michael Kors chairman and CEO John Idol said in a press release. “We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth.”
The Versace family will also become shareholders of Capri Holdings, with Donatella Versace working on the forward movement in the brand’s development. Donatella Versace is the artistic director of the Italian fashion company who has helped lead the company since the death of her brother in 1997.
“It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra,” Donatella Versace said in a news release. “I am proud that Versace remains very strong in both fashion and modern culture.”