In September 2018, the CEO of what was then Michael Kors Holdings delivered thrilling news to investors. The company had agreed to acquire the storied Italian fashion house Versace from private equity giant Blackstone in a $2.1 billion blockbuster deal.
The purchase created a multi-brand luxury powerhouse made up of Michael Kors jet-set lifestyle apparel and designer bags, the iconic Jimmy Choo footwear brand, plus the red-carpet glamour of Versace. Donatella Versace herself, who stepped up to lead after her brother Gianni’s tragic death in 1997, was in place as the creative visionary and said she was “excited” about the long-term prospects for the brand her brother founded in Milan in 1978. The nouveau American fashion conglomerate was poised to rival European competitors like Louis Vuitton and Hermes owner LVMH and Gucci owner Kering—with soaring revenues to boot.
“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,” said CEO and Chairman John D. Idol. “I am thrilled to have the opportunity to work with Donatella on Versace’s next chapter of growth.”
After the acquisition, the company renamed itself Capri Holdings after the striking three-rock formation that is one of the most recognizable sights on the Italian billionaire playground island of Capri. The company targeted revenues of $8 billion for the group, with Versace delivering $2 billion, Michael Kors behind $5 billion, and Jimmy Choo delivering $1 billion.
