After 24 hours of waiting, official and details also arrive. Versace was bought by Michael Kors for $2,12 billion, equal to 1,83 billion euros, an assessment that also includes the company's debt. The two companies signed the definitive agreement today. The amount paid by the US group is even higher than that expected by the market, so high as to allow the US company to defeat the fierce competition of giants such as Kering (which according to rumors had put just over one billion on the plate), Lmvh and Tapestry.
The Versace family will receive 150 million euros of the share price of Capri Holdings Limited, the new name adopted by Michael Kors after the acquisition and inspired, according to the group's note, "by the legendary island which has long been recognized as a iconic, glamorous and luxurious”.
“Santo, Allegra and I are aware that this next step will allow for Versace to reach its full potential“, commented Donatella. The US group acquires all the shares, today 80% in the hands of the Versace family through Givi and 20% in the Blackstone fund.
Donatella Versace will remain in the group as creative director: “Donatella's iconic style is at the heart of Versace's design aesthetic. She will continue to lead the company's creative vision. I am thrilled to have the opportunity to work with Donatella on the next chapter of Versace's growth,” said John D. Idol, president and CEO of Michael Kors Holdings.
Kors aims to grow Versace's revenues to 1,2 billion dollars in 2022, the year in which the stores will rise to 250. The long-term goal is more ambitious: 2 billion revenues, an ebitda of 300 million dollars and 300 stores so as to contribute to the growth of the turnover of the group, which already owns Jimmy Choo shoes, up to 8 billion dollars.
In detail already in 2019, Versace's goal is to reach 850 million dollars in revenues from the 775 million dollars expected for the end of this year (about 657 million euros), a level substantially in line with the 668 million euros in 2017. Ebitda will be 220 million this year and 190 million next year, probably affected by the investments that will also be made to expand the network of stores. The ebitda will rise to 250 million dollars in 2022 and then reach the target of 330 million. We remember that Versace returned to profit last year, after a period of difficulty: it closed 2017 with a positive net result of 15 million, against a loss of 6,9 million in 2016.
As for the Michael Kors Limited, the company that will be replaced by Capri Holdings Limited, has a market capitalization of $9,9 billion. Its major shareholders are Vanguard Group, with 10,3% of the shares, followed by Blackrock (7,45%) and State Street (4,77%).
On the New York Stock Exchange, after losing 8,3% in yesterday's session, 24 September, the Michael Kors share is down today in the pre-market by a further 1,36%.
