Michael Kors (NYSE: KORS) is to buy Versace in a $2 billion deal.
The Italian newspaper Corriere della Sera has reported that the US luxury brand is expected to announce the deal with the Milanese fashion house on Tuesday.
US private equity firm Blackstone took a 20 percent stake in Versace in 2014, which will also be sold onto Michael Kors.
Blackstone injected €150 million of capital into Versace and acquired €60 million in stock in Versace at the time of purchase.
A source told Reuters: “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.”
Michael Kors bought Jimmy Choo, the luxury shoemaker founded in London, for almost £900 million.
Michael Kors said the acquisition was expected to deliver “the opportunity to grow Jimmy Choo sales to one billion dollars” and allow “a more balanced portfolio with greater product diversification”.
Versace reported sales of €686 million in 2016.
The group’s chief executive, Jonathan Akeroyd, said earlier this year that annual turnover was soon expected to be over €1 billion.