Michael Kors Holdings changes his name to Capri Holdings Limited and completes the acquisition of Gianni Versace for 2.12 billion dollars.
The change of name of Michael Kors is official from 2 January.
The American group also changed the symbol to the New York Stock Exchange, from “KORS” to “CPRI”. The name refers to the iconic Italian luxury destination, as recalled by John D. Idol, chairman and CEO of Capri Holdings, now “one of the global fashion luxury group leaders, with the acquisition of Versace”.
The goal, with the new structure, is to grow the company by exploiting the possible operational synergies.
As previously announced, in the long run, revenues will reach € 8 billion distributed as follows: € 2 billion for Versace, 5 for Michael Kors and 1 for Jimmy Choo (announced in 2017).
The idea of the management is a diversification of sales by geographical area that will favor the Asian region. In particular, Asia should increase from 11% to 19% of total turnover, Europe from 23% to 24% and the Americas from 66% to 57%.
The acquisition, we remember, took place by valuing Versace 1.83 billion euros (2.12 billion dollars at the date of the announcement). The Versace family has decided to reinvest the amount of 150 million euros to acquire almost 2.4 million ordinary shares of Capri Holdings.
Waiting for the agreement to take off, the Capri Holdings shares are traded around 39 dollars in New York, far from the highs touched between August and September (over 70 dollars). In one year the stock lost 25% of its value.