Michael Kors Nears Versace Purchase in Challenge to European Luxury Groups

LONDON - Michael Kors is close to announcing a deal to buy Versace, the Italian fashion house, in its latest step toward becoming a rival for Europe's luxury conglomerates, two people with knowledge of the matter said Monday In 2014, the Blackstone Group, the American private equity giant, bought a 20 percent stake in the company, and Versace had been exploring publicly listing its shares For Kors, the purchase of Versace would burnish its ambitions to become an American counterpart to the European conglomerates such as LVMH and Kering, which have dominated the fashion industry with brands like Louis Vuitton and Gucci.

In 2017, Kors bought the British shoe company Jimmy Choo for 896 million pounds, or about $1.2 billion Kors is not alone in its calculated buying spree - and is competing with other deep-pocketed suitors such as the company formerly known as Coach - now called Tapestry - which has bought brands including Kate Spade and Stuart Weitzman Leather purses sell for as little as $70, and handbags are available for $95Versace, controlled by its namesake family since the 1997 murder of its founder, Gianni Versace, offers Kors an intriguing skein of possibilities.

Documents filed with the Italian Chamber of Commerce in 2017 show that the fashion house collected sales of €668 million, or about $786.5 million, and reported €44.6 million, or $52.5 million in earnings before interest, tax, depreciation and appreciation. . Source