Watch Newsy On TV

Michael Kors Agrees To Buy Versace For More Than $2B

SMS
Michael Kors Agrees To Buy Versace For More Than $2B
As part of the deal, Donatella Versace will stay on to oversee the creative vision of the Italian fashion house.
SHOW TRANSCRIPT

Michael Kors is getting an upgrade to its wardrobe — it announced Tuesday it's buying the luxury Italian fashion house Versace for more than $2 billion.

As part of the deal, Donatella Versace will stay on to oversee the creative vision of the label, which was founded by her late brother Gianni Versace in 1978.

Michael Kors — which will be renamed Capri Holdings Ltd. after the deal closes — has big plans for the European brand. 

It wants to boost Versace's global revenue to $2 billion, build an additional 100 stores worldwide and expand the brand's accessories and footwear businesses.

Industry experts theorize the move will help give Michael Kors a one-up on competitors, like Louis Vuitton and Coach's parent companies. 

Kors has been strategically aiming to boost its luxury appeal. It acquired high-end shoemaker Jimmy Choo for more than $1 billion last year. 

Additional reporting from Newsy affiliate CNN