Michael Kors to acquire Jimmy Choo for $1.2 billion
Seeking to restore lost luster by adding “Sex & the City” stilettos, Michael Kors Holdings Limited has agreed to acquire Jimmy Choo Plc. for $1.2 billion.
The acquisition of Jimmy Choo will give the New York-based fashion and accessories giant a presence in higher-end luxury market.
Luca Solca, an analyst with Exane BNP Paribas, said, “Again, Michael Kors follows the path of Coach -- and again, on steroids. After a meteoric rise and spectacular crash, it is now the time to recycle cash into other brands.”
Under the terms of the deal, Michael Kors will pay 230 pence per share for Jimmy Choo. The figure represents a premium of 18 per cent over the stock’s closing price on Monday.
Jimmy Choo gained prominence in the late 1990s, boosted by high-profile personalities like late Princess Diana and the fictional Carrie Bradshaw in “Sex & the City” TV series.
Michael Kors’ acquisition of London-based Jimmy Choo reminds Coach Inc.’s acquisition of shoemaker Stuart Weitzman in 2015. Earlier this year, Coach Inc. also agreed to purchase Kate Spade & Co.
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