Michael Kors to Buy Jimmy Choo in $1.2 Billion
Michael Kors Holdings, one of America’s best-known fashion retailers has accepted to take over luxury shoe brand Jimmy Choo in an £896m deal.
The New York-listed chain, stated that it was “the ideal partner” for Jimmy Choo.
Jimmy Choo is famous for its stiletto shoes and accessories.
It was revealed earlier that several buyers were in the race and mulling offers for the upmarket shoe designer,
Under the terms of the deal, Jimmy Choo shareholders will receive 230p in cash for each share, a premium of 36.5% on the firm’s share price of 168.5p on 21 April.
Michael Kors will support the growth of Jimmy Choo through “retail store openings and further development of its online presence”.
John Idol, chairman and chief executive indicated that they are committed to supporting Jimmy Choo.
“We believe that Jimmy Choo is poised for meaningful growth in the future.
We are committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.”
The brand was founded by entrepreneur Tamara Mellon and footwear designer Jimmy Choo back in 1996, with both later selling their holdings.
The shoe firm will operate under its existing management team, including chief executive Pierre Denis.
It has more than 150 stores globally as well as a presence in many of the world’s top department stores.
Michael Kors has been enduring a difficult trading period and has been expanding into dresses and menswear.
The company known widely for their bag are investing in its online business to boost sales.