Michael Kors has reached an agreement with Jimmy Choo to acquire the luxury footwear and accessories company in a deal with an enterprise value of $1.35bn.
The US retail giant is to pay 230 pence per share for its British rival with the stated objective of growing Jimmy Choo’s sales to $1bn.
Jimmy Choo was made available for sale in April after its holding company JAB made clear its intentions to focus on the consumer rather than the luxury market.
Michael Kors will now operate it as a subsidiary, with its Chairman and CEO John Idol hailing his company’s new acquisition as a ‘leader’ in the industry.
“We are pleased to announce the acquisition of Jimmy Choo, an iconic brand with a rich history as a leading global luxury house,” he said.
“Jimmy Choo is known worldwide for its glamorous and fashion-forward footwear. The company is a leader in setting fashion trends.
“We believe that Jimmy Choo is poised for meaningful growth in the future and our company is committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.”
Jimmy Choo has a global presence with 150 company-owned retail stores, 560 multi-brand doors and more than 60 franchise stories around the world.
The brand grew its reputation through associations with the famous faces like the Duchess of Cambridge, Emma Stone and Beyonce.
“We look forward to working closely with the leadership and team at Michael Kors Holdings Limited to further develop our iconic brand,” added Pierre Denis, Chief Executive Officer of Jimmy Choo.
“Our two companies share the same vision of style and trend leadership. Our luxury heritage is the foundation of Jimmy Choo and we will continue to bring our brand vision to consumers globally.”