Michael Kors Holdings Ltd. has made its newest relationship official.
Today, the growing fashion conglomerate announced the completion of its deal to acquire Italian fashion house Versace, effectively changing its name to Capri Holdings Ltd. On Jan. 2, the former KORS will begin trading under the New York Stock Exchange ticker symbol CPRI.
“With the acquisition of Versace, we have now created one of the leading global fashion luxury groups in the world,” Capri Holdings chairman and CEO John Idol said in a statement.
Explaining the group’s new name, he said that Capri Holdings was “inspired by the fabled island which has long been recognized as an iconic, glamorous and luxury destination. The island’s renowned three rock formation, formed over 200 million years ago, is symbolic of the timeless heritage and strong foundation that is at the core of each of the three founder-led brands.”
As previously disclosed, the transaction to merge Kors and Versace amounted to an enterprise value of 1.83 billion euros, or $2.12 billion. It first made the announcement to acquire all outstanding shares of Gianni Versace SpA in late September.
Idol previously said he expected Versace to grow to more than $2 billion in revenues, foreseeing “multiple years of revenue and earnings growth.” Its long-term expansion strategy involves plans to add 200 to 300 Versace stores internationally as well as accelerate the firm’s omnichannel development.
Less than two years ago, Kors also procured storied footwear brand Jimmy Choo. The company’s larger move into luxury pits it against major European fashion conglomerates LVMH Moet Hennessey Louis Vuitton and Kering.
When Kors Met Versace: How Insiders Feel About Fashion’s Newest Mega-Marriage
Michael Kors and Versace to Join Forces in $2B Deal