Michael Kors has bought Versace for $2.12 billion, which was confirmed on Tuesday (September 25) amid speculation.
Donatella Versace, who ran the luxury fashion brand with her brother Santo and her daughter Allegra, released a statement about the deal, which read, "It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra. I am proud that Versace remains very strong in both fashion and modern culture."
In addition to the billions, Donatella and her family will receive around $177 million in shares of the new company. Michael Kors chairman and CEO John D. Idol also commented on the deal, stating, "We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth. With the full resources of our group, we believe that Versace will grow to over U.S. $2 billion in revenues."
According to reports, the new company is focused on raising its exposure in Asia and reducing their reliance on business in the Americas. In addition to buying Versace, Michael Kors also owns Jimmy Choo, which they bought last summer for $1.2 billion.