Michael Kors Holdings Ltd. will buy Italian fashion label Gianni Versace SpA for 1.83 billion euros ($2.2 billion), bringing the American luxury company closer to its goal of becoming an international house of fashion brands.
The company said it plans to increase Versace’s sales to $2 billion annually, more than double the current level, expanding the number of stores globally to 300 from about 200 and accelerating e-commerce development. Michael Kors said it will rename itself Capri Holdings Ltd. as it develops its multibrand luxury strategy.
“The acquisition of Versace is an important milestone for our group,” Michael Kors Chief Executive Officer John Idol said in a statement. “We are committed to investing in its growth.”