Michael Kors

Michael Kors announces $2.1 billion Versace deal

Photo: Scott Olson/Getty Images

Michael Kors will officially acquire Italian fashion brand Versace for $2.1 billion, as reported Monday by multiple news outlets. When the deal closes, the company says it will be renamed to Capri Holdings Limited, and Blackstone will cash out of its 20% stake.

Why it matters: The deal and the name change marks a rebranding for Michael Kors as it attempts to reposition itself within the luxury retail market, which is much more resistant to the pains of economic downturns than traditional retail.

Michael Kors will reportedly buy Italian brand Versace

Outside of Versace store.
Versace store in Milan, Italy. Photo: Vittorio Zunino Celotto/Getty Images

Michael Kors is close to buying Versace in a deal valuing the brand around $2 billion, multiple news outlets report. Blackstone, which has a 20% stake in the company, will reportedly exit, while the Versace family will maintain its role.

Why it matters: After its acquisition of Jimmy Choo last year, Michael Kors made it clear it wants a leg up in the luxury retail world. A Versace takeover would help it compete with the likes of Coach-parent Tapestry, which owns Stuart Weitzman and Kate Spade, and other fashion conglomerates like LVMH.