LONDON: US fashion group Michael Kors Holdings Ltd has sealed an agreement to take control of Italy's Gianni Versace SpA, three sources familiar with the matter said on Monday, adding that an official announcement would be made this week.
Italian fashion designer Donatella Versace attends Green Carpet Fashion Awards 2018, in Milan on Sunday. (EPA-EFE photo)
Versace declined to comment.
The deal values the fashion house, known for its Medusa head logo, at no less than $2 billion, two of the sources added.
As part of the deal, Blackstone, which took a 20% stake in Versace back in 2014, will fully exit the Italian company, while the Versace family, which owns the rest of the company, will keep a role, the sources said.
Blackstone declined to comment.
The news of the imminent Versace sale was first reported by Italian daily Corriere della Sera earlier on Monday.
London-based Kors last year snapped up shoemaker Jimmy Choo Plc for about £896 million ($1.2 billion), expanding beyond its namesake brand. Now, it’s vying with Coach owner Tapestry Inc to build a US-based multibrand fashion empire along the lines of Paris-based conglomerates LVMH and Kering SA.
Versace, known for its flamboyant style and Medusa-head logo, hired CEO Jonathan Akeroyd in 2016 from Alexander McQueen. The company had been working toward an initial public offering, though market conditions haven’t allowed it to move ahead.
Corriere della Sera reported earlier that Versace could be sold this week for about $2 billion, with several groups interested including Kors and Tiffany & Co LVMH, PVH Corp and Tapestry also looked at Versace in recent months, according to a report on Sunday by Women’s Wear Daily.
Donatella Versace and her brother Santo Versace have helped run the company since their brother Gianni’s murder in 1997. Donatella serves as creative director, while Santo is chairman.