Fashion giant Michael Kors will acquire Versace for $2.12 billion. The new company will be named Capri Holdings Ltd.
As part of the acquisition, Michael Kors will buy all of Versace's outstanding shares for a total enterprise value of 1.83 billion euros, to be funded in cash, debt and shares in Michael Kors Holding Ltd.
U.S. private equity firm Blackstone, which has 20% stake in Versace, will fully exit the company.
John Idol, Chief Executive Officer of Michael Kors, said, "The acquisition of Versace is an important milestone for our group. We are committed to investing in its growth."
Michael Kors is planning to raise the number of Versace outlets from 200 to 300. The company further looks to double the turnover by boosting the percentage of footwear and accessories from 35% to 60% of revenues.
Donatella Versace, Creative Director of Versace, said, "This is a very exciting moment for Versace. It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra. I am proud that Versace remains very strong in both fashion and modern culture. Versace is not only synonymous with its iconic and unmistakable style, but with being inclusive and embracing of diversity, as well as empowering people to express themselves."