Michael Kors confirmed purchasing Italian fashion house Versace for $2.12 billion on Tuesday, according to the Business of Fashion.
The addition of Versace to Kors’ portfolio is setting it up to become one of the most profitable fashion conglomerates, in line with LVMH and Kering. The designer is scheduled to change the name of his company, Michael Kors Ventures, to Capri Holdings after the acquisition of the 40-year-old brand.
Despite the new deal, executive positions at Versace will stay the same. Jonathan Akeroyd will remain the brand’s chief executive, and Donatella Versace, the sister of Versace founder, Gianni Versace, will continue as the creative director.
“This is a very exciting moment for Versace,” Donatella said in a statement. “It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra.”
She added that the family becoming shareholders in Capri Holdings will add to the staying power of the Versace brand. “Santo, Allegra and I recognize that this next step will allow Versace to reach its full potential… We believe that being part of this group is essential to Versace’s long-term success. My passion has never been stronger. This is the perfect time for our company, which puts creativity and innovation at the core of all of its actions, to grow.”
The new direction for Versace will include widening its e-commerce reach, increasing the number of retailers and expanding accessories and footwear lines.
Kors bought the luxury shoe brand Jimmy Choo for $1.2 billion in July 2017, according to Forbes.