Versace is due to be sold to Michael Kors, according to recent reports. According to Italian newspaper Courier della Serra, Donatella Versace planned a staff meeting for today to announce the official news.
The deal between Michael Kors and Versace has officially been confirmed, with an approximate enterprise value of $2.12 billion USD. The announcement was made today and it is worth 2.5 times more than the brand’s current revenue. On top of that, the deal is worth 22 times more than its earnings before interest, taxes, depreciation, and amortization (EBITDA).
Business of Fashion reports that the deal is primarily a cash one, with 150 million euros in stock, and is part of Kors plan to build a portfolio of high-end luxury brands. The move comes after it acquired Jimmy Choo for $1.2 billion USD and is widely seen as a move into building a portfolio to rival LVMH and Kering.
What do you guys think of this move?
In other style news, Supreme x Nike FW18 is workwear on steroids.