The acquisition agreement was officially announced on September 25. Donatella Versace, who has been running the luxury brand since the murder of her brother, Gianni Versace in 1997, described the sale as a “very exciting moment” and said it would “allow Versace to reach its full potential”. John Idol, Chief Executive, Michael Kors, said Donatella is to continue to lead Versace’s “creative vision” and that, after the acquisition, the Group would be renamed as Capri Holdings. As reported by ILM, the acquisition has estimated at US$2 billion
Reportedly, Michael Kors aims to increase the number of Versace retail units from 200 to 300 stores and to more than double turnover to US$2 billion, partly by boosting the percentage of footwear and accessories, which constitutes 35% to 60% of revenues.
Private equity firm Blackstone Group is to sell its 20% stake in Versace.