The legendary Michael Kors is expanding his fashion empire. The fashion designer announced today that his company is set to purchase Jimmy Choo for a whopping $1.2 billion ($1.5 billion AUD). Under the deal, each shareholder of the high-end footwear label will receive $3 per share in cash, WWD reports.
It's an interesting pairing for the two, given their vastly different design styles. Co-founded in the 1990s by bespoke shoemaker Jimmy Choo and Tamara Mellon, the iconic shoe brand is known for it's sky-high stilettos and glamorous designs, while Kors is known for streamlined leather goods and ready-to-wear.
Kors believes in the match, however, with his company telling WWD it plans to incorporate the "experiences, infrastructure, and capabilities that it has developed over the course of its own worldwide growth as a luxury fashion brand to support the growth of Jimmy Choo through retail store openings and further development of its online presence."
John D. Idol, chairman and chief executive officer of Michael Kors Holdings, told the publication: “We are creating a global luxury fashion group. Our focus is on international fashion luxury that are industry leaders.”
Jimmy Choo will continue to operate with Pierre Denis as CEO and Sandra Choi as creative director, and is expected to continue on the same luxury shoe design path.
Congratulations to both brands on the deal, we can't wait to see what happens next.