Michael Kors Acquired Jimmy Choo For $1.2 Billion In Cash

By  |  0 Comments
Share Button

Jimmy Choo‚Äės¬†Fall 2017¬†Ad Campaign.

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, ‚Äúafter 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)‚ÄĚ.

On May 22, we reported that Michael Kors was interested in Jimmy Choo (see it here). Today, July 25, it was announced that acquired Jimmy Choo for $1.2 billion in cash.

According to WWD, “The boards of directors of¬†Michael Kors¬†Holdings Limited and¬†Jimmy Choo¬†PLC said early Tuesday they reached an agreement for a recommended cash acquisition by which the entire issued and to be issued ordinary share capital of Jimmy Choo will be acquired by JAG Acquisitions, a wholly-owned subsidiary of Michael Kors.”

Under the terms of the deal, each scheme shareholder will receive 2.30 pounds in cash for each Jimmy Choo share, valuing Jimmy Choo‚Äôs existing issued and to be issued ordinary share capital at approximately 896 million pounds.”

The price of 2.30 pounds per Jimmy Choo share represents a premium of approximately 36.5 percent to Jimmy Choo‚Äôs share price of 1.69 pounds at the close of business on April 21, 2017, the last business day before the Jimmy Choo directors announced the commencement of the formal sale.”

Michael Kors said it believes it is the ideal partner for Jimmy Choo and is well positioned to support the footwear brand‚Äôs continued growth. The company said it intends to apply the ‚Äúexperiences, infrastructure and capabilities that it has developed as a company over the course of its own worldwide growth as a luxury fashion brand to support the growth of Jimmy Choo through retail store openings and further development of its online presence.‚ÄĚ

 

Michael Kors, honorary chairman, and chief creative officer said: ‚ÄúWe admire the glamorous style and trendsetting nature of Jimmy Choo designs. We look forward to welcoming Jimmy Choo to our luxury group.‚ÄĚ

The company added that it is also planning an ‚Äúexpanded assortment of additional fashion product offerings.‚ÄĚ Jimmy Choo, it said, will operate ‚Äúas it does today,‚ÄĚ under its existing management team of Pierre Denis, chief executive officer, and Sandra Choi, creative director, within the Michael Kors organization.

John D. Idol, chairman and chief executive officer of Michael Kors, called Choo ‚Äúan iconic brand with a rich history.‚ÄĚ

He said the company ‚Äúis 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.‚ÄĚ

Michael Kors, honorary chairman, and chief creative officer, said: ‚ÄúWe admire the glamorous style and trendsetting nature of Jimmy Choo designs. We look forward to welcoming Jimmy Choo to our luxury group.‚ÄĚ

Jimmy Choo‚Äės¬†Fall 2017¬†Ad Campaign

 

Photo Credit: Jimmy Choo via Theo Wenner 

Source: WWD

Share Button
Donovan

Donovan is the CEO and Editor-In-Chief of www.dmfashionbook.com. For all general inquiries please email don@dmfashionbook.com Donovan has a BA in Journalism & Media Studies from the prestigious Rutgers University. He's currently studying entertainment and fashion law.