Michael Kors Holdings Limited to Be Renamed Capri Holdings Limited
Michael Kors Holdings Limited (NYSE:KORS), a global fashion luxury group, announced today that a definitive agreement has been signed to acquire all of the outstanding shares of Italian luxury fashion house Gianni Versace S.p.A. for a total enterprise value of Euro 1.83 billion or approximately US$2.12 billion. Versace, long recognized as one of the world’s leading luxury fashion companies, is synonymous with Italian glamour and style.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180925005557/en/
L-R: Jonathan Akeroyd, Donatella Versace, John D. Idol. (Photo: Rahi Rezvani)
John D. Idol, Chairman and Chief Executive Officer of Michael Kors Holdings Limited, said, “The acquisition of Versace is an important milestone for our group. Versace was founded in 1978. For over 40 years, Versace has represented the epitome of Italian fashion luxury, a testament to the brand’s timeless heritage. We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth. 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.”
Mr. Idol continued, “Donatella’s iconic style is at the heart of the design aesthetic of Versace. She will continue to lead the company’s creative vision. I am thrilled to have the opportunity to work with Donatella on Versace’s next chapter of growth.”
“This is a very exciting moment for Versace,” said Donatella Versace. “It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra. 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. Santo, Allegra and I recognize that this next step will allow Versace to reach its full potential. We are all very excited to join a group led by John Idol, whom I have always admired as a visionary as well as a strong and passionate leader. We believe that being part of this group is essential to Versace’s long-term success. My 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.”
Donatella added, “Santo, Allegra and I will become shareholders in Capri Holdings Limited. This demonstrates our belief in the long-term success of Versace and commitment to this new global fashion luxury group.”
“Versace’s management team will continue to be led by Chief Executive Officer, Jonathan Akeroyd, who has been an instrumental partner to Donatella in driving growth and success for Versace worldwide,” added John D. Idol. “He and Donatella have assembled strong senior management and design teams that will continue to lead Versace into its next chapter. We are extremely fortunate to be able to acquire such an extraordinary brand with an incredibly talented team.”
Jonathan Akeroyd, Chief Executive Officer of Versace, said, “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. I am thrilled to be joining Capri Holdings Limited, which will be instrumental in accelerating our growth globally.”
Strategic Initiatives and Transaction Rationale
As part of our strategic plan for the long-term growth of Versace, we intend to execute on the following key initiatives:
- Grow Versace to US$2.0 billion in revenues globally
- Build on Versace’s luxury runway momentum
- Enhance Versace’s powerful and iconic marketing
- Increase global retail footprint from approximately 200 to 300 stores
- Accelerate e-commerce and omni-channel development
- Expand men’s and women’s accessories and footwear from 35% to 60% of revenues
The acquisition of Versace is expected to deliver a number of benefits for our Company, including:
- Opportunity to help grow our group’s revenues to US$8.0 billion in the long-term
- Expand our global luxury group to include three iconic founder-led brands defined by fashion luxury products with a reputation for world-class design and innovation
Diversify our geographic portfolio from:
- 66% Americas to 57% Americas
- 23% Europe to 24% Europe
- 11% Asia to 19% Asia
- Potential to create long-term operational synergies
The transaction is not subject to a financing condition. The cash portion of the purchase price is expected to be funded by a combination of cash on hand, drawings under the company’s existing revolving credit facility, and committed underwritten bank term loans from our advisors JPMorgan Chase Bank, N.A. and Barclays. The Versace family will also receive Euro 150 million of the purchase price in shares of Capri Holdings Limited. The transaction is expected to close in the company’s fourth fiscal quarter, subject to specified closing conditions, including the receipt of required regulatory approvals.
Our New Name
Capri Holdings Limited (NYSE:CPRI) is the new name to be adopted by Michael Kors Holdings Limited upon the closing of the acquisition. Our name is inspired by the fabled island which has long been recognized as an iconic, glamorous and luxury destination. The island’s spectacular three rock formation, formed over 200 million years ago, is symbolic of the timeless heritage and strong foundation that is at the core of each of the three founder-led brands in our global fashion luxury group.
The company believes that the acquisition of Versace enhances the company’s economic value and will drive improved long-term shareholder value by accelerating long-term revenue and EPS growth potential. On a non-GAAP basis the acquisition is expected to be dilutive to earnings per share in the high-single digits in fiscal 2020, accretive in the low-single digits in fiscal 2021, and accretive in the high-single digits in fiscal 2022.
Conference Call and Additional Information
The company will host a conference call to discuss the transaction at 8:45 a.m. ET today, September 25, 2018. Participants may dial 1-800-289-0438 or 1-323-794-2423, conference ID: 9704344. A live webcast of the conference call will also be available on the investor relations portion of the Michael Kors Holdings Limited website, www.investors.michaelkors.com. A replay of today’s call will be available through October 2, 2018 by dialing 1-844-512-2921 or 1-412-317-6671, conference ID: 9704344. For additional information concerning the transaction, please see the investor presentation available on the Investor Relations page of the Michael Kors Holdings Limited website at www.investors.michaelkors.com. For the avoidance of doubt, the contents of this website are not incorporated into and do not form part of this press release.
About Michael Kors Holdings Limited
Michael Kors Holdings Limited is a global fashion luxury group, consisting of iconic brands that are industry leaders in design, style and craftsmanship. Its brands cover the full spectrum of fashion luxury categories including women’s and men’s accessories, footwear and ready-to-wear as well as wearable technology, watches, jewelry, eyewear and a full line of fragrance products. The company’s goal is to continue to extend the global reach of its brands while ensuring that they maintain their independence and exclusive DNA. Michael Kors Holdings Limited is publicly listed on the New York Stock Exchange under the ticker KORS.
Founded in 1978 in Milan, Versace is one of the leading international fashion design houses and a symbol of Italian luxury worldwide. It designs, manufactures, distributes and retails fashion and lifestyle products including haute couture, prèt-à-porter, accessories, jewelry, watches, eyewear, fragrances, and home furnishings all bearing the distinctive Medusa logo. The Versace group distributes its products through a worldwide distribution network which includes over 200 boutiques in some of the world’s most glamourous cities.
This press release contains statements which are, or may be deemed to be, “forward-looking statements.” Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Michael Kors Holdings Limited (the “Company”) and Gianni Versace S.p.A (“Versace”) about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. The forward-looking statements contained in this press release include statements relating to the expected effects of the acquisition on the Company and Versace, the expected timing and scope of the acquisition and other statements other than historical facts. All statements other than statements of historical facts included in this press release may be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets”, “plans”, “believes”, “expects”, “aims”, “intends”, “will”, “should”, “could”, “would”, “may”, “anticipates”, “estimates”, “synergy”, “cost-saving”, “projects”, “goal”, “strategy”, “budget”, “forecast” or “might” or, words or terms of similar substance or the negative thereof, are forward-looking statements. Forward-looking statements include statements relating to the following: (i) future capital expenditures, expenses, revenues, earnings, economic performance, indebtedness, financial condition, share buybacks, dividend policy, losses and future prospects; (ii) business and management strategies and the expansion and growth of the Company’s and Versace’s operations and benefits from the acquisition; and (iii) the effects of government regulation on the Company’s or Versace’s business. These forward-looking statements are not guarantees of future financial performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many risks, uncertainties and other factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. These risks, uncertainties and other factors include the satisfaction of the conditions to consummating the acquisition, timing of closing of the acquisition, the Company’s ability to integrate the businesses successfully and to achieve anticipated benefits of the acquisition; the risk of disruptions to the Company’s or Versace’s businesses; the negative effects of the announcement of the proposed acquisition or the consummation of the proposed acquisition on the market price of the Company’s ordinary shares and its operating results; significant transaction costs; unknown liabilities; the risk of litigation and/or regulatory actions related to the proposed acquisition; fluctuations in demand for the Company’s and Versace’s products; future levels of indebtedness; future availability of credit; the timing and scope of future share buybacks, which may be suspended at any time due to market conditions and the level of other investing activities and uses of cash, including in connection with the pending acquisition; changes in consumer traffic and retail trends; loss of market share and industry competition; fluctuations in the capital markets; fluctuations in interest and exchange rates; the occurrence of unforeseen disasters or catastrophes; political or economic instability in principal markets; adverse outcomes in litigation; and general, local and global economic, political, business and market conditions, as well as those risks set forth in the reports that the Company files from time to time with the U.S. Securities and Exchange Commission. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements. Such forward-looking statements should therefore be construed in the light of such factors. Unless otherwise required by applicable law, neither the Company nor Versace, nor any of their respective associates or directors, officers or advisors, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this press release will actually occur. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements. All subsequent oral or written forward-looking statements attributable to the Company or Versace or any of their respective members, directors, officers or employees or any persons acting on their behalf are expressly qualified in their entirety by the cautionary statement above. The Company and Versace disclaim any obligation to update or revise any forward-looking or other statements contained herein other than in accordance with their legal and regulatory obligations.
Om Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Følg saker fra Business Wire
Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra Business Wire
Global Payments’ TouchNet Business Named “Partner of the Year” by Ellucian10.12.2018 13:30 | Pressemelding
Global Payments Inc. (NYSE: GPN), a leading worldwide provider of payment technology and software solutions is pleased to announce that its TouchNet business was named “Partner of the Year” by Ellucian, a provider of software and services that power higher education, at its Partner Forum reception during the annual EDUCAUSE Conference this year in Denver, CO. TouchNet was recognized for its collaborative efforts to deliver streamlined engaging, cloud-based, student commerce and credential solutions. This honor further demonstrates the depth and breadth of the TouchNet platform and its dedication to delivering software-driven and technology-enabled strategies to institutions of higher education. “TouchNet’s commitment to delivering maximum value enables Ellucian to consistently provide customers with best-in-class solutions, support and service,” said Chris Westfall, Vice President Partnerships Ellucian. “When you combine Ellucian’s feature rich technology and in-depth customer knowledg
CTS Engines Hires Tom Bode as Senior Vice President, Operations10.12.2018 13:00 | Pressemelding
CTS Engines, the global leader for mature engine maintenance within the Aerospace & Defense industry, announced today that it had hired Tom Bode as its Senior Vice President, Operations. In his new role, Mr. Bode will be responsible for all operations, quality, and engineering functions, and will report to Vesa Paukkeri, CTS Engines’s President and COO. Since 2008, Mr. Bode has been the General Manager of the Columbus Engine Center for Pratt & Whitney, a company he joined in 2000. Prior to 2000, Mr. Bode worked at GE Aviation, where he was a quality and engineering leader. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181210005036/en/ Tom Bode (Photo: Business Wire) “As the General Manager of CEC, Tom managed over 700 employees across multiple engine production lines and reduced overhaul turnaround times through the promotion of Lean manufacturing principles,” said Mr. Paukkeri. “His performance as a manager was recognized
Tracxpoint Signed a Major Agreement to Deploy its Artificial Intelligence Cart (AiC®) Platform at CONAD, One of the Largest and Most Sophisticated Supermarket Chains in Italy with 3,000 Locations in Lieu of Amazon Go after Intensive Study10.12.2018 11:00 | Pressemelding
Tracxpoint, a global provider of next-generation self-checkout grocery solutions, today announced an agreement to roll out its Artificial Intelligence Cart (AiC®) at CONAD DEL TIRRENO, one of the seven cooperatives of CONAD’s chain with more than 3,000 supermarket stores in Italy. This is a major milestone for the Israeli startup in its mission to establish the AiC® platform as the most powerful, accessible and comprehensive solution for self-checkout and personalized in-store engagement on the market today. CONAD DEL TIRRENO will start implementing the AiC® ecosystem during 2019. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181210005176/en/ The Tracxpoint AiC enables checkout-free stores and personalized in-store engagement for Italy's largest supermarket chain, CONAD. (Photo: Business Wire) In direct contrast to capital-intensive and smaller store concepts like Amazon Go or its imitators that rely on ceiling cameras for
Jetex Now the Exclusive Dealer in the Middle East for Hi-Tech New HondaJet10.12.2018 09:52 | Pressemelding
Jetex is bringing the next-generation in advanced private jets to the Middle East after striking an agreement with Honda Aircraft Company to become the exclusive authorized dealer for the region. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181210005273/en/ Adel Mardini of Jetex signs with Simon Roads of Honda Aircraft Company (Photo: AETOSWire) The deal means Jetex is now the manufacturer’s sole representative for the new HondaJet offering sales and support across the Gulf and Middle East region. “With Honda’s brand strength and recognition in the Middle East, we have received tremendous interest in the HondaJet Elite. We are proud to appoint Jetex as HondaJet Middle East to provide our customers with a committed sales team in the region for the world’s most advanced very light jet,” said Honda Aircraft President and CEO Michimasa Fujino. “We are proud to be chosen by Honda Aircraft Company and excited to be awarded the r
China Shanghu Builds Itself into an International Health Demonstration Zone10.12.2018 09:16 | Pressemelding
On October 25, 2018, the 13th Meeting of the Conference of the Contracting Parties to the Ramsar Convention on Wetlands declared that Changshu was put on the list of the first “International Wetland Cities” in the world, in recognition of its success in the protection of wetland ecology. The award is arguably the most influential on a global scale—supreme and unchallenged. It was against this backdrop that the project of Changshu Shanghu International Health Demonstration Zone was commenced. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181210005254/en/ 2025 Shanghu International Health Demonstration Zone (Photo: Business Wire) Covering an area of about 40 million square meters, Changshu Shanghu, a national wetland park, is slap bang in the middle of the city, including 800-hectare ecological lake, four parks and ten places of interest. In compliance with the strategy for Healthy China 2030, the characteristic “Modern Healt
KOKUYO's "360° Gliding Chair ing" Wins FRAME Awards ORGATEC 2018 in Two Categories10.12.2018 09:00 | Pressemelding
KOKUYO Co., Ltd. (TOKYO:7984), a leading provider of office design and furniture in Japan, won FRAME Awards for "360º Gliding Chair ing" in two categories at ORGATEC 2018, “Trade Fair Stand of the Year” and “Best Use of Light,” which is organized by the Dutch interior design magazine "FRAME." This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181210005248/en/ KOKUYO's "360° Gliding Chair ing" Wins FRAME Awards ORGATEC 2018 (Photo: Business Wire) ORGATEC 2018, the largest International Trade Fair for Furnishing and Management of Offices and Office Facilities was held from October 23 to 27 in Cologne, Germany. Internationally renowned creators and critics from Amsterdam, Berlin, and elsewhere in Europe were the judges of FRAME Awards critiquing global furniture manufacturer booths in four categories: Best Use of Colour, Best Use of Light, Best Use of Material, and Trade Fair Stand of the Year. Winners in these categories will be h