Michael Kors to be renamed Capri Holdings after US$2.12bn acquisition of Versace

Michael Kors Holdings will rename to Capri Holdings following its approximately US$2.12 billion acquisition of Italian luxury fashion house Gianni Versace. According to the company, the name is inspired by the island in Italy's Bay of Naples which is recognised as an iconic, glamorous and luxury destination.The island's three rock formation, formed over 200 million years ago, symbolises the "timeless heritage and strong foundation" that is at the core of each of the three founder-led brands in Capri Holdings.Among the list of benefits that Versace is expected to deliver via the acquisition include the opportunity to help Capri Holdings grow its group revenues to US$8.0 billion in the long-term, as well as diversify its geographic portfolio. This includes growing from 11% to 19% in Asia and 23% to 24% in Europe.Capri Holdings aims to grow the brand to US$2.0 billion in revenues globally, enhance its "powerful and iconic" marketing and increase global retail footprint from 200 to 300 stores. The company will also accelerate Versace's e-commerce and omni-channel development, expand men's and women's accessories and footwear from 35% to 60% of revenues and build on Versace's luxury runway momentum.Donatella Versace, chief designer of Versace Group and sister of its founder, will continue to lead the company's creative vision. She will also become a shareholder of Capri Holdings, along with her brother and daughter. Meanwhile, Versace's management team will continue to be led by CEO Jonathan Akeroyd, who has played a crucial role in driving growth and success for the brand globally.News of the possible acquisition sparked consumer backlash recently, with many urging the brand not to sell to Michael Kors and threatening to boycott the brand if the deal goes through. Comments were also being left on Versace’s Instagram posts telling her not to sell the brand.This acquisition comes around one year after it acquired luxury footwear brand Jimmy Choo for US$1.2 billion, with the former saying it would keep the existing management structure of Jimmy Choo once the deal completes, with Pierre Denis staying on as chief executive.Chairman and CEO of Michael Kors Holdings, John Idol, said the acquisition is an important milestone for the group. "With the full resources of our group, we believe that Versace will grow to over US$2.0 billion in revenues. We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth," he said."I am proud that Versace remains very strong in both fashion and modern culture. Versace is not only synonymous with its iconic and unmistakable style, but with being inclusive and embracing of diversity, as well as empowering people to express themselves," Versace said.She added that being part of this group is "essential" to the fashion brand's long-term success and her passion has "never been stronger". "This is the perfect time for our company, which puts creativity and innovation at the core of all of its actions, to grow," she added.“Since I joined Versace over two years ago, our focus has been on leveraging the company’s heritage and strong brand recognition worldwide, which has allowed us to experience significant growth in all regions. Donatella’s unmatched vision has led to the continued and growing success of our brand," Akeroyd said.