Michael Kors on Tuesday announced that it will acquire luxe footwear brand Jimmy Choo for £896 million, or roughly $1.2 billion — a deal with an enterprise value of $1.35 billion. The transaction has been approved by the boards of directors of both Michael Kors and Jimmy Choo, according to a company press release.
The acquisition is an opportunity to grow Jimmy Choo sales to $1 billion and it provides greater exposure to global markets, particularly in Asia. The merger also provides both companies with a more balanced portfolio and greater product diversification; gives Michael Kors an enhanced positioning in the attractive and growing luxury footwear segment; and allows an opportunity to grow men’s luxury footwear sales and luxury accessories sales, the company also said.
- In April, Jimmy Choo’s majority shareholder, JAB Luxury, an investment company run by German billionaire family Reimann, confirmed the brand had put itself up for sale. The brand runs about 150 company-operated retail stores, 560 multi-brand doors and more than 60 franchise stores in premier locations worldwide, according to Michael Kors’ announcement.
Jimmy Choo was founded in London in 1996 by Malaysian fashion designer Jimmy Choo and then-Vogue editor Tamara Mellon. They’ve since left, and the brand has been run by CEO Pierre Denis since 2012 and Creative Director Sandra Choi, who was been there since its founding and in that position since 2013. Both will stay on through the acquisition, Michael Kors CEO John Idol said in a statement, adding “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…