If you’re a fashion enthusiast, you might have heard about the acquisition of Versace by Michael Kors in 2018. Since then, there has been a lot of speculation about how much of Versace does Michael Kors really own. In this article, we will delve deeper into the details of this acquisition.
The Acquisition
In September 2018, Michael Kors Holdings Limited announced that it had acquired Gianni Versace S.p.A for $2.12 billion. The deal was financed through a combination of cash on hand, loans and issuance of debt. This move came as a surprise to many in the fashion industry, as it was not known that Versace was looking for a buyer.
The Ownership
After the acquisition, Michael Kors Holdings Limited changed its name to Capri Holdings Limited to reflect its ownership of three luxury brands – Michael Kors, Jimmy Choo and Versace. So how much of Versace does Capri Holdings really own?
According to reports, Capri Holdings owns 100% of Gianni Versace S.A., which includes the brand’s various lines such as Versus and home furnishings. This means that Michael Kors and Capri Holdings have complete control over the Versace brand.
The Impact
The acquisition has had significant implications for both Michael Kors and Versace. For Michael Kors, it has allowed the company to expand its portfolio and enter into the luxury market. The acquisition has also helped diversify the company’s revenue streams and reduce its dependence on the North American market.
For Versace, the acquisition by an American conglomerate has resulted in a shift in focus towards global expansion. The brand has already opened new stores in China and plans to open more stores in other countries like Japan and South Korea.
Conclusion
In conclusion, Capri Holdings Limited, formerly known as Michael Kors Holdings Limited, owns 100% of Gianni Versace S. This acquisition has allowed Michael Kors to enter into the luxury market and diversify its revenue streams, while also enabling Versace to focus on global expansion. Only time will tell how successful this acquisition will be for both companies in the long run.