Michael Kors has acquired Jimmy Choo in a cash deal. Fashion website WWD reports the famous footwear brand, loved by celebrities, royalty and politicians, has been valued at over a billion dollars (£896 million).
An agreement was reached early Tuesday morning by the boards of directors of Michael Kors Holdings Limited and Jimmy Choo PLC, which will see the entire share capital of Jimmy Choo be acquired by JAG Acquisitions, a wholly-owned subsidiary of Michael Kors.
The deal will see Jimmy Choo scheme shareholders receive $2.99 (£2.30) in cash for each Jimmy Choo share, which brings the total to £896 million.
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"Jimmy Choo is a premier fashion luxury house that offers distinctive footwear, handbags and other accessories," Kors said in a statement. "We admire the glamorous style and trendsetting nature of Jimmy Choo designs. We look forward to welcoming Jimmy Choo to our luxury group."
The news comes nearly two months after it was announced Kors was closing up to 125 stores over the next two years following weak sales.
In quarterly results reported in May, the company's total sales had fallen 11.2 per cent to $1.06 billion (£815 million) in the period, while the comparable store sales fell 14.1 per cent.
As of April, Michael Kors operated 827 retail stores, including concessions.
Chairman and chief executive officer John D. Idol stated that the company's poor performance was partly due to a "difficult retail environment", and he said going forward the brand will be taking steps to engage and excite customers with new product offerings.