Capri Holdings Limited, a global fashion luxury group, announced it has changed its name from Michael Kors Holdings Limited, and from today /2 January 2019/ its New York Stock Exchange ticker symbol will be CPRI. The company also confirmed it has completed the acquisition of Versace
John D. Idol, Chairman and Chief Executive Officer of Capri Holdings stated: “With the acquisition of Versace, we have now created one of the leading global fashion luxury groups in the world. The new name for our group, Capri Holdings, 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.”
Mr. Idol continued: “Versace has long been recognized as one of the world’s leading fashion luxury houses, and is synonymous with Italian glamour and style. We are thrilled that the house of Versace is now part of the Capri Holdings family of luxury brands. We look forward to working with Chief Creative Officer Donatella Versace, Chief Executive Officer Jonathan Akeroyd, and their incredibly talented team to continue to drive Versace’s growth and success globally.”
According to the parts involved, the acquisition of Versace is expected to deliver a number of benefits for Capri Holdings, including:
– Expand global group to include three iconic founder-led brands defined by fashion luxury products with a reputation for world-class design and innovation;
– Opportunity to help grow the group’s revenues to 8.0 billion US dollars in the long-term:
Grow Versace to 2.0 billion US dollars in revenue;
Grow Jimmy Choo to 1.0 billion US dollars in revenue;
Grow Michael Kors to 5.0 billion US dollars in revenue;
– Diversify geographic revenues, increasing exposure to growing Asia region:
66% Americas to 57% Americas;
23% Europe to 24% Europe;
11% Asia to 19% Asia;
– Potential to create long-term operational synergies.
As previously announced, Capri Holdings acquired Versace for a total enterprise value of 1.83 billion euros (approximately 2.12 billion US dollars on the date of announcement). The cash portion of the purchase price was funded by a combination of cash on hand, drawings under its revolving credit facility, and bank term loans. Concurrently with the closing, the Versace family reinvested an aggregate of 150 million US dollars of the cash received for their interests in Versace in exchange for 2 395 170 ordinary shares of Capri Holdings.