Michael Kors to acquire Jimmy Choo
Fashion brand Michael Kors is to acquire luxury footwear brand Jimmy Choo for £896 million.
Under the terms of the transaction, Jimmy Choo shareholders will receive 230 pence per share.
John Idol, chairman and chief executive of Michael Kors, said, “We are pleased to announce the acquisition of Jimmy Choo, an iconic brand with a rich history as a leading global luxury house.
“We believe that Jimmy Choo is poised for meaningful growth in the future and our company is committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.”
Jimmy Choo chief executive Pierre Denis will continue in his role following the acquisition, having led the company since 2012. In addition, the brand’s creative director Sandra Choi will continue to lead the creative and design teams at the company.
Idol added: “Mr Denis, Ms Choi and the rest of the highly-talented management team have done a tremendous job, and this continuity of leadership will ensure that the DNA of Jimmy Choo is maintained as we work together to continue to grow the brand globally.”
Founded in 1996, by Jimmy Choo and Tamara Mellon, Jimmy Choo has 150 company-operated retail stores, 560 multi-brand doors and more than 60 franchise stores worldwide.
Michael Kors said the acquisition of Jimmy Choo is expected to deliver a number of benefits including a more balanced portfolio, an enhanced positioning in the growing luxury footwear segment and greater exposure to global markets. It also sees an opportunity to grow Jimmy Choo sales to $1 billion and expand further into the men’s luxury footwear market and luxury accessories market.
Denis said: “It is a privilege for our management team to lead Jimmy Choo and to preside over such an exciting period for our company. We are convinced that there is so much more that can be delivered in the years ahead. We look forward to working closely with the leadership and team at Michael Kors Holdings Limited to further develop our iconic brand.”
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