- Michael Kors has agreed to buy the Italian fashion house Versace in a $2.12 billion deal.
- Michael Kors will be called Capri Holdings, and it has plans to grow Versace's revenue, increase its store footprint and online presence, and focus on shoes and accessories.
- Donatella Versace, who took over Versace after her brother Gianni Versace was murdered in 1997, will retain her position as creative director of the luxury fashion brand.
- Here's how Versace became the iconic fashion brand it is today.
Michael Kors has agreed to buy the Italian fashion house Versace in a $2.12 billion deal.
As part of the deal, Michael Kors is changing its name to Capri Holdings. The company says it aims to grow Versace's revenue from about $808 million to $2 billion, expand its footprint from 200 stores to about 300 stores, and increase the amount of shoes and accessories it sells. Developing Versace's online presence will also be a focus.
"We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth," Michael Kors Chairman and CEO John Idol said in a press release announcing the acquisition.
Donatella Versace said in a statement: "Versace is not only synonymous with its iconic and unmistakable style, but with being inclusive and embracing of diversity, as well as empowering people to express themselves. Santo, Allegra and I recognize that this next step will allow Versace to reach its full potential."
Donatella Versace took over as creative director after the 1997 murder of her brother Gianni Versace, the iconic founder of the beloved fashion house. Her brother Santo became CEO. Donatella's daughter Allegra, who was 11 at the time of Gianni's death, inherited 50% of the company, making her a near-billionaire after the acquisition by Michael Kors, according to The Guardian. Donatella Versace will stay on as creative director.
Here's a look back on the history of the iconic fashion brand:
Gianni Versace grew up in the city of Reggio Calabria in Italy. His mother was a dressmaker, and he would learn new things from her when he visited her workshop.
Source: Harper's Bazaar
He eventually moved to Milan, where he started the Versace brand in 1978.
Source: Harper's Bazaar
His younger sister, Donatella Versace, served as vice president of the brand and assisted with design. Their brother Santo oversaw the company's finances.
Source: Harper's Bazaar
Gianni Versace's designs were known for pushing boundaries.
In 1989 his haute couture line debuted, modeled by Christy Turlington, Naomi Campbell, Linda Evangelista, and Cindy Crawford. Gianni Versace was largely crediting with bringing all of the supermodels together on the runway.
Source: CR Fashion Book
As the label flourished, Gianni Versace helped make fashion more mainstream, with celebrities like Elton John, Prince, and Madonna wearing the brand's designs. Versace was one of the first fashion brands to draw high-profile celebrities to its shows.
Source: Harper's Bazaar
Versace became known for running high-profile campaigns shot by iconic fashion photographers like Richard Avedon and Bruce Weber.
Source: CR Fashion Book
Gianni Versace himself was considered a pop-culture icon defined by flashy excess, gold, and supermodels.
Source: CR Fashion Book
But in 1997, when he was at what many say was the peak of his career, Gianni Versace was shot and killed at his Miami Beach home by the serial killer Andrew Cunanan.
Source: Harper's Bazaar
Donatella Versace took over as the head designer and creative director for the company. Their brother Santo took over as Versace's CEO.
Source: CR Fashion Book
In February 2014, Versace announced the private-equity firm Blackstone would acquire 20% of the company, with the Versace family holding on to the other 80%.
Source: Versace
Two years later in 2016, the Versace Group appointed Jonathan Akeroyd CEO.
Source: Versace
On Monday, Bloomberg reported that Michael Kors was in talks to acquire Versace for $2 billion.
Source: Bloomberg
The deal was officially announced on Tuesday. Michael Kors will acquire Versace for $2.12 billion, with plans for the company including expanding its store fleet and online presence, adding more accessories and shoes to its collection, and more than doubling the brand's revenue.
Source: Business Insider
Michael Kors will now be called Capri Holdings, and Donatella Versace will remain creative director of the brand.
