In a major fashion industry shakeup, Michael Kors is reportedly set to buy Versace in a two-billion-dollar deal. Though not officially confirmed, the news is rumored to be announced as early as this week.
According to Business of Fashion, US fashion group Michael Kors Holdings Ltd. is close to an agreement to buy Gianni Versace S.p.A, the private Italian fashion company under the creative reins of Donatella Versace. In the reported deal, the Versace family would continue to have a role in their company.
Though Versace is a privately owned company, Blackstone Group LP, a US-based private equity group, bought a 20-percent stake in Versace back in 2014. It’s unclear if the group would sell its stake to Michael Kors Holdings in the rumored deal.
If true, this would be Michael Kors’ latest move to expand its portfolio of luxury brands. Just last year, the brand acquired luxury British shoe brand Jimmy Choo in a $1.2 billion deal. Of course, Kors and Versace make for an interesting pairing. While Versace is famous for its over-the-top glitz and signature Italian glamour, Kors is the antithesis of that aesthetic, with a focus on affordable luxury and all-American ready-to-wear collections.
From Harper’s Bazaar