Michael Kors is to buy British luxury shoe and accessory brand Jimmy Choo for £900 million, reports The Guardian. At auction, bids came from a host of competitive international names with the luxury goods brand coming out on top.
The US-based business has agreed on a sum of 230p per share, with board
directors - who currently own 1.3 per cent - agreeing
to the "fair and
reasonable" terms of acquisition. Additionally, unless a third party
presents an additional offer, this agreement is "final and will not be
increased."
The founders of Jimmy Choo - Tamara Mellon and Jimmy Choo - are no
longer involved with the shoe brand, whose strappy stilettos have
reached cult status. In April this year, majority shareholder JAB Luxury
placed the business on the market and will sell its six per cent hold
to focus on other areas of growth.
While changes are being made
financially, Pierre Denis, who has run Jimmy Choo since 2012, will
remain at the helm with creative director, Sandra Choi, staying in her
role also. Choi is expected to gain £2.2 million for her stake in the
business, Denis £6.2 million.
Speaking of the acquisition, Michael Kors himself described the new
partnership as "ideal", while chief executive, John Idol, added: “Jimmy
Choo is known worldwide for its glamorous and fashion-forward footwear.
The company is a leader in setting fashion trends. Its innovative
designs and exceptional craftsmanship resonate with trendsetters
globally. We believe that Jimmy Choo is poised for meaningful growth in
the future and we are committed to supporting the strong brand equity
that Jimmy Choo has built over the last 20 years.”
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