Michael Kors is to buy British luxury shoe and accessory brand Jimmy Choo for £900 million, reports The Guardian. At auction, bids came from a host of competitive international names with the luxury goods brand coming out on top.
The US-based business has agreed on a sum of 230p per share, with board directors – who currently own 1.3 per cent – agreeing to the “fair and reasonable” terms of acquisition. Additionally, unless a third party presents an additional offer, this agreement is “final and will not be increased.”
The founders of Jimmy Choo – Tamara Mellon and Jimmy Choo – are no longer involved with the shoe brand, whose strappy stilettos have reached cult status. In April this year, majority shareholder JAB Luxury placed the business on the market and will sell its six per cent hold to focus on other areas of growth.
While changes are being made financially, Pierre Denis, who has run Jimmy Choo since 2012, will remain at the helm with creative director, Sandra Choi, staying in her role also. Choi is expected to gain £2.2 million for her stake in the business, Denis £6.2 million.
Speaking of the acquisition, Michael Kors himself described the new partnership as “ideal”, while chief executive, John Idol, added: “Jimmy Choo is known worldwide for its glamorous and fashion-forward footwear. The company is a leader in setting fashion trends. Its innovative designs and exceptional craftsmanship resonate with trendsetters globally. We believe that Jimmy Choo is poised for meaningful growth in the future and we are committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.”