Luxury fashion company Michael Kors has acquired high-end footwear label Jimmy Choo for $1.2 billion.
The ready-to-wear giant made the purchase through JAG Acquisitions, a wholly-owned subsidiary of the Michael Kor's label. The takeover of Jimmy Choo comes two months after rival handbag maker Coach struck a deal to buy Kate Spade & Co. It is the first step in a new expansion strategy of Michael Kors, which is to be continued with further purchases.
Speaking on the new acquisition, John D. Idol, chairman and CEO of Michael Kors Holdings, said, 'Michael Kors is the number one style and trend leader in the world from an American standpoint, Jimmy Choo, from a luxury footwear standpoint, is one of the leaders on a global basis.'
Idol further added that the idea is to create a global luxury fashion group that puts the label in line with European luxury groups LVMH and Kering.
Under the new deal, shareholders of Jimmy Choo will receive $3.70 per share while Jimmy Choo will continue to be led by the same management team, CEO Pierre Denis as well as Creative Director Sandra Choi.
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