Fashion brand Michael Kors is to acquire London-based shoe and accessories brand Jimmy Choo in a deal worth $1.2 billion (£896m).
This will be the first acquisition for the Michael Kors brand and it’s expected more will follow as the fashion house plans to grow into a larger international luxury group.
John D. Idol, chairman and chief executive of Michael Kors Holdings said: “Acquiring Jimmy Choo is the beginning of a strategy that we have for building a luxury group that really is focused on international fashion brands.”
Creative director at Jimmy Choo, Sandra Choi said: “I think John Idol is a successful man who has built a great business with Kors, I think there are a lot of synergies — in bags for Jimmy Choo and shoes for Kors.”
Jimmy Choo was put up for sale in April and there were several interested parties. Jimmy Choo shoes are a favourite of celebrities and are commonly seen on the red carpet and at the Oscars. The business was founded in 1996 and sold to JAB Holdings in 2014.
Michael Kors has set targets to double sales to $1 billion and open 10 new retail stores globally each year. Other plans for the brand are an improved online presence and an expanded men’s luxury footwear range. Sales figures have been down for the company in recent years.
Under the terms of the acquisition, Jimmy Choo shareholders will receive 230p for each share they own.