Michael Kors buys Jimmy Choo for $1.2 billion

TASS, July 25. American company Michael Kors reached agreement on the purchase of the British Shoe manufacturer Jimmy Choo for £896 million ($1.2 billion), said in a statement.

Michael Kors will pay £2,3 per share in cash, Jimmy Choo.

Shoe brand was put up for sale in April of this year, as its main owner – Holding JAB – decided to withdraw from the luxury goods segment.

The newspaper the Wall Street Journal noted that Michael Kors sale Jimmy Choo presents the opportunity to diversify its business in the face of slowing growth in the market of handbags, which specializiruetsya company. According to research firm Customer Growth Partners, which results in the publication, last year the market grew by only 2%, while six years ago the growth was 15% per year.

According to a statement from Michael Kors, the company plans to increase sales Jimmy Choo to $1 billion.

British brand Jimmy Choo was founded in 1996 by businessman Jimmy Chu and former editor of the British Vogue, Tamara Mellon. In 2001, the businessman sold his stake in the company (50%) over £10 million Since then, the brand changed owners several times.

Michael Kors is an American brand of clothes, shoes, perfumes and accessories. Founded by Michael Kors in 1981.