Capri Holdings Limited, the parent company of fashion brands such as Michael Kors, Jimmy Choo and Versace, acquired Versace in September 2018. The deal was worth a staggering $2.12 billion and marked a significant milestone in the fashion industry.
The Acquisition
With the acquisition, Capri Holdings Limited aimed to create a global fashion luxury group that could rival other major players in the industry. Versace was seen as an ideal addition to Capri’s portfolio due to its strong brand recognition and loyal customer base.
Capri’s CEO, John D. Idol, stated that “the acquisition of Versace is an important milestone for our group. With our three iconic brands, we are now uniquely positioned in the industry.”
The Impact
The acquisition has had a significant impact on both Capri and Versace. For Capri, it has allowed them to expand their brand portfolio and increase revenue streams. For Versace, it has provided access to new markets and resources that were previously unavailable.
As part of the acquisition deal, Donatella Versace – sister of late founder Gianni Versace – remained as creative director of the brand while retaining a minority stake in the company.
Financials
The financial impact of the acquisition was significant for both companies. Following the announcement of the deal, shares in Capri Holdings Limited rose by over 10%. Additionally, sales for Michael Kors – another brand owned by Capri – increased by 9% during Q4 2018.
For Versace, the acquisition provided much-needed financial stability after years of struggling with profitability issues. Donatella Versace stated that “this is not just about money; it’s about joining forces to reach new heights.”
The Future
Looking ahead, both Capri and Versace have ambitious plans for growth and expansion. Capri’s CEO, John D. Idol, has stated that “we believe that Versace is capable of achieving revenues in excess of $2 billion annually” and that the brand has significant potential for growth in Asia.
With the backing of Capri Holdings Limited, Versace is well-positioned to continue its legacy as a leading fashion brand for years to come.
10 Related Question Answers Found
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