Michael Kors (NYSE:KORS) has announced their £896 million deal to buy the British luxury brand, Jimmy Choo (LON:CHOO).
Jimmy Choo was put up for sale in April this year and was bought for an all cash offer of 230p per share. According to Michael Kors, this offer is “final and will not be increased”.
Mr Kors described the purchase as “a premier fashion luxury house that offers distinctive footwear, handbags and other accessories”.
“We admire the glamorous style and trendsetting nature of Jimmy Choo designs. We look forward to welcoming Jimmy Choo to our luxury group.”
The purchase of Jimmy Choo is expected to lead to a number of benefits including: “the opportunity to grow Jimmy Choo sales to one billion” and “a more balanced portfolio with greater product diversification”.
JAB Holding, who owns 70 percent of the shoemaker have said they want to move out of luxury fashion and towards and food and coffee markets.
“A combination with Michael Kors will allow Jimmy Choo to embark on its next phase of growth and provide opportunities for the benefit of Jimmy Choo customers, employees, shareholders and other stakeholders. The company is a leader in setting fashion trends. Its innovative designs and exceptional craftsmanship resonate with trendsetters globally. We believe that Jimmy Choo is poised for meaningful growth in the future and we are committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.” said John Idol, chairman and chief executive officer of Michael Kors.
Chairman Peter Harf said: “A combination with Michael Kors will allow Jimmy Choo to embark on its next phase of growth and provide opportunities for the benefit of Jimmy Choo customers, employees, shareholders and other stakeholders.”
Michael Kors has been expanding into menswear and investing into online sales after a difficult trading period.
The deal is expected to close in the fourth quarter of 2017.