One of the most popular brands, Michael Kors, already agreed in buying the British shoemaker to the stars. The UK company, Jimmy Choo reports selling its brand to the US fashion brand. This is after the company is being on the market for three months.
According to The Peninsula Qatar, Jimmy Choo set a price tag of almost £900 million or $1.2 Million. The brand caters to Beyoncé, Nicole Kidman, Lady Gaga, and even Duchess Kate Middleton, to name a few, is one of the higher end brands.
The shoemaker for the stars sets to be the ideal partner for the US clothing and handbag line. According to the statement released, the boards of directors of Michael Kors Holding Limited as well as Jimmy Choo are pleased to announce that they have already agreed. The terms of the recommended cash acquisition remain confidential and unreleased in public.
However, the cash deal was rumored to pitch at around 230 pence per values and shares of Jimmy Choo. Their stocks floated on the London Stock Exchange back in 2014. The company reports being in the market for a total of £896 million.
According to the statement released by Michael Kors, the brand believes that their ideal partner is Jimmy Choo. The brand supports the continued growth of Jimmy Choo. It will continuously support them every step of the way.
Michael Kors intends to share all its experiences, capabilities as well as infrastructures to develop as a company. The brand is planning to support the growth of Jimmy Choo for the next 20 years.
Michael Kors Holding Limited is reportedly able to secure the backing of a Luxembourg-based investment firm. They were able to get the support of Jimmy Choo’s major shareholder, JAB Luxury, which holds about 67.66% of the shares of the company.
CHANGES IN THE MANAGEMENT
Based on The Peninsula Qatar’s report, Jimmy Choo will still retain its current management team. This includes the Chief Executive Officer, Pierre Denis as well as the other members of the board.
According to John Idol, Michael Kors’ Chairman as well as Executive Officer, Michael Kors believes that Jimmy Choo sets for a meaningful growth in the future. The company commits to supporting the UK brand over the last 20 years.
The London-listed luxury shoe brand was founded by Malaysian-born Jimmy Choo together with British socialite Tamara Mellon. As part of their strategic review, Jimmy Choo put itself on sale last April. Michael Kors took over 36.5% of its shares.
Jimmy Choo became a household name after being featured in the high profile TV show “Sex and the City.” The brand also developed different products such as bags, scarves, fragrances, and other leather goods.
According to Peter Harf, the combination of the companies Michael Kors and Jimmy Choo will embark a new phase of growth. It will also provide a lot of opportunities for the benefit of the employees of Jimmy Choo, their customers, their shareholders, and other stakeholders.
With Michael Kors acquiring two big companies already, it looks like that Michael Kors will continue to expand their business.