Popular fashion house Michael Kors is taking aim at the luxury market by purchasing high-end brand Versace for $2.1 million.
Following the close of the acquisition, Michael Kors will change its name to Capri Holdings, inspired by an “iconic, glamorous and luxury destination” island, the company said on Tuesday.
It plans to grow Versace to $2 billion in revenue globally and increase its retail footprint from roughly 200 to 300 stores.
Michael Kors had already dipped its toes in European fashion, last year buying shoe brand Jimmy Choo for $1.2 billion.
As part of the deal, Donatella Versace, who has helped run the company since her brother Gianni was murdered in 1997, will stay on to oversee the label. Donatella, her brother Santo and daughter Allegra will also stay on as shareholders in the company.
Versace’s management team will continue to be led by its CEO, Jonathan Akeroyd.
“We are all very excited to join a group led by [Michael Kors CEO] John Idol, whom I have always admired as a visionary as well as a strong and passionate leader. We believe that being part of this group is essential to Versace’s long-term success,” Donatella said, as part of the company statement on Tuesday.
Private-equity firm Blackstone, which owns 20 percent of Versace, will cash out as part of its deal.