- Prachi Singh |
Michael Kors has said in a statement that it has reached an agreement to acquire luxury footwear and accessories brand Jimmy Choo. Under the terms of the transaction, the company said, Jimmy Choo shareholders will receive 230 pence per share, with an enterprise value of 1.2 billion dollars (1.0 billion euros).
Commenting on the acquisition, John D. Idol, Chairman and Chief Executive Officer of Michael Kors, said in a statement, “We are pleased to announce the acquisition of Jimmy Choo, an iconic brand with a rich history as a leading global luxury house. We believe that Jimmy Choo is poised for meaningful growth in the future and our company is committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.”
Michael Kors acquires Jimmy Choo
“Pierre Denis will continue in his role as CEO of Jimmy Choo. He has led the company since 2012, during which time Jimmy Choo experienced compounded sales growth of 11 percent annually. Additionally, Creative Director Sandra Choi will continue to lead the creative and design teams at the company. Sandra has been with Jimmy Choo since its inception and has been the sole Creative Director since 2013,” added Idol.
Jimmy Choo, a luxury accessories brand launched way back in 1996, operates approximately 150 company-operated retail stores, 560 multi-brand doors and more than 60 franchise stores in premier locations worldwide. The company has a strong presence in Europe, the Middle East, the Americas and Asia. In addition, Jimmy Choo continues to invest significantly in its online platform, which has experienced strong revenue growth in recent years.
Commenting on the development, Pierre Denis, CEO of Jimmy Choo, said: “It is a privilege for our management team to lead Jimmy Choo and to preside over such an exciting period for our company. We are convinced that there is so much more that can be delivered in the years ahead. We look forward to working closely with the leadership and team at Michael Kors Holdings Limited to further develop our iconic brand.”
The acquisition of Jimmy Choo, Michael Kors said, is expected to deliver a number of benefits, including the opportunity to grow Jimmy Choo sales to 1 billion dollars, a more balanced portfolio with greater product diversification, an enhanced positioning in the attractive and growing luxury footwear segment, the opportunity to grow in the men’s luxury footwear category, further expansion in the luxury accessories market, greater exposure to global markets, particularly the fast-growing market in Asia and the potential to create long-term operational synergies.
One Minute Recap: Jimmy Choo news development
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Picture:Jimmy Choo website