Michael Kors has confirmed plans to buy Versace in a $2.1 billion deal.
The US company confirmed the takeover after fans called on Versace to stop the sale.
John D. Idol, the chairman and chief executive officer of Michael Kors, said the deal was “an important milestone for our group”.
“For over 40 years, Versace has represented the epitome of Italian fashion luxury, a testament to the brand’s timeless heritage,” he said in a statement.
“We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth. With the full resources of our group, we believe that Versace will grow to over $2 billion in revenues.”
“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,” he added.
Donatella Versace, who is the creative director of Versace, said sale the sale was a “very exciting moment” and will “allow Versace to reach its full potential”.
Michael Kors plans to increase the number of Versace outlets from 200 to 300 and double the group’s turnover to $2 billion.
Last year the US luxury fashion brand bought Jimmy Choo for almost £900 million.
The deal was first reported on Monday by Italian newspaper Corriere della Sera.
Reuters later reported the news after a source revealed: “They gradually persuaded the family to look into a possible sale and introduced them to a series of buyers, including Michael Kors.”
“Blackstone wasn’t going to put any more money into it. They needed a buyer who could make heavy investments.”
Shares in Michael Kors (NYSE: KORS) are down 8.21 percent at 66,71 (1324GMT).
