The US luxury Group Michael Kors (KORS) is to buy the Italian Fashion House Versace. According to several media sources, Kors is the main candidate to acquire the pop-icon culture brand icon Versace.
It is estimated that the price would be about twice the Versace revenues, so that the price tag would be about 2 billion dollars. The revenue of the Italian Fashion House was 686 million euros last year. This transaction would mean that the family and private equity company Blackstone would sell their shares to Kors.
Michael Kors, which listed in the New York Stock Exchange NYSE in 2011, is one of the luxury groups in the US. The IPO was priced at 20 dollars, when the stock is trading around 65 dollars today.
The companies are having different customer segments related to their products and this move is seen more as an expansion of the Michael Kors to upmarket brands. Like Financial Times wrote today, this transaction would be like mini-LVMH or mini-Kering to Kors.