UK/USA. Michael Kors Holdings has acquired British luxury footwear and accessories brand Jimmy Choo in a deal worth US$1.35 billion.
Under the terms of the transaction, Jimmy Choo shareholders will receive 230 pence (300 cents) per share.
The acquisition is expected to deliver a number of benefits to Michael Kors, including the opportunity to grow Jimmy Choo sales to US$1 billion, a more balanced portfolio with greater product diversification, greater exposure to global markets and the opportunity to grow in the men’s luxury footwear category.
Michael Kors said it intends to apply its experiences, infrastructure and capabilities to support the growth of Jimmy Choo through retail store openings and further development of its online presence as well as through an expanded assortment of additional fashion product offerings.
Michael Kors Chairman and Chief Executive Officer John D. Idol said: “We are pleased to announce the acquisition of Jimmy Choo, an iconic brand with a rich history as a leading global luxury house. 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 our company is committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.”
Idol continued: “Pierre Denis will continue in his role as Chief Executive Officer of Jimmy Choo. He has led the company since 2012, during which time Jimmy Choo experienced compounded sales growth of +11% annually. Pierre brings more than 25 years of experience and a strong track record with global fashion luxury brands.
“Additionally, Creative Director Sandra Choi will continue to lead the creative and design teams at the company. Sandra has been with Jimmy Choo since its inception and has been the sole Creative Director since 2013. Her groundbreaking vision and fashion artistry have created a truly iconic and internationally recognised luxury brand.
“Mr. Denis, Ms. Choi and the rest of the highly-talented management team have done a tremendous job, and this continuity of leadership will ensure that the DNA of Jimmy Choo is maintained as we work together to continue to grow the brand globally.”
Jimmy Choo Chief Executive Officer Pierre Denis commented:
“It is a privilege for our management team to lead Jimmy Choo and to preside over such an exciting period for our company. We are convinced that there is so much more that can be delivered in the years ahead. We look forward to working closely with the leadership and team at Michael Kors Holdings Limited to further develop our iconic brand. Our two companies share the same vision of style and trend leadership. Our luxury heritage is the foundation of Jimmy Choo and we will continue to bring our brand vision to consumers globally.”
