Michael Kors is buying the Italian fashion house Gianni Versace in a deal worth more than $2 billion, continuing its hard charge into the world of high-end fashion. The deal announced Tuesday follows the New York handbag maker's $1.35 billion acquisition last year of the shoemaker Jimmy Choo, per the AP. CNNMoney reports that after the deal goes through, the company will also take on a new name: Capri Holdings, "inspired by the fabled island which has long been recognized as an iconic, glamorous, and luxury destination," per a release.
Michael Kors Holdings Ltd., like others in the fashion industry, is trying to fire up sales by adding on big name brands like the globally revered Versace: Tapestry, for example, once known as Coach, owns Stuart Weitzman, and last year it acquired Kate Spade. The new company's plans, per CNN, is to open more retail locations, enhance e-commerce services, and stretch more into the accessories and footwear categories. As for the sister of the late Versace founder? Donatella Versace "will continue to lead the company’s creative vision," Michael Kors CEO John Idol says in the release. Donatella Versace, for her part, notes: "We believe that being part of this group is essential to Versace's long-term success. My passion has never been stronger." (Read more Versace stories.)