Michael Kors Interested In Jimmy Choo?
In the beginning of this year, DM Fashion Book exclusively reported that American fashion brand and designer Michael Kors was interested in purchasing Kate Spade New York, the American fashion design house, which was founded by Kate Spade and Andy Spade in 1993 (see it here).
Obviously that deal is now out of the picture because a couple of weeks ago, we reported that, “after months of speculations, Coach is set to buy Kate Spade. In a new announcement, Coach has revealed that the deal is expected to close in the third quarter of 2017 (see it here)”.
It is now being reported that Michael Kors is interested in Jimmy Choo.
According to WWD, “Whispers in the market have Michael Kors growing more interested in the British footwear and accessories brand, which is playing the field since its majority owner, JAB Holding Co., has deemed luxury “non-core” now that it’s big in the world of coffee.”
“Jimmy Choo contracted Bank of America Merrill Lynch and Citi to find would-be buyers.”
“It would be a big deal, but not as big as Kate Spade. Jimmy Choo, which trades on the London Stock Exchange, has a market capitalization of 771 million pounds, or $994 million.”
“The company has a total enterprise value of 906 million pounds, or $1.2 billion, about 2.5-times sales, which last year totaled 364 million pounds, or $469 million. Three-quarters of that top line comes from shoes.”
“‘A deal with Jimmy Choo, if one were to materialize, would bring Michael Kors another brand, with a higher price point, and a greater emphasis on shoes. (Kors has just under 11 percent of its business in footwear.)”