Versace Set to Be Sold to Michael Kors for $2 Billion
According to recent reports, Versace is due to be sold to Michael Kors.
Italian newspaper, Courier Della Serra, reports that Donatella Versace called a staff meeting for Tuesday when the official announcement would be made.
Donatella refused to comment on the report when speaking to the paper, however.
Rumours are circulating that the brand may be selling to Michael Kors or jeweler Tiffany & Co. The value price of the luxury fashion company is $2 billion USD.
In 2014 the sold a 20% stake to US private equity group Blackstone. In addition, earlier this year chief executive Jonathan Akeroyd told Reuters that there was no need to rush into the stock market.
UPDATE: Michael Kors has confirmed their $2.12 billion USD purchase of Versace.
Recent reports from Business of Fashion note that the announcement was made on the morning of the September 25. The deal was valued at 2.5 times Versace’s current revenue and 22 times more than its earnings. This before interest, taxes, depreciation, and amortization (EBITDA).
This purchase falls in line with Kors’ plan to build a portfolio of high-end luxury brands. Following the acquisition of Jimmy Choo for $1.2 billion USD, Kors is now in the running to become one of the most profitable fashion giants rivaling LVMH and Kering.
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