Michael Kors on the road to buy the iconic luxury brand of Versace for a whopping 2 BILLION Dollars. Yes ladies and gentlemen thats a "B" for Billion. Multiple media sources have reported that this deal is indeed in the works. USA TODAY says:
Italian fashion house Versace could announce its sale to U.S.-based fashion group Michael Kors this week, with a deal potentially valuing the Milan-based brand at about $2 billion, according to multiple media reports.
Sources familiar with the deal spoke anonymously to Bloomberg and Reuters, with the latter describing the decision as finalized.
Donatella Versace, the brand's artistic director, called for a staff meeting Tuesday tied to the sale, both outlets reported. She has helped lead the company with brother Santo Versace, its chairman, since the 1997 murder of their sibling Gianni, the company's founder.
The Versace family owns 80 percent of the company, per the reports, and would stay on board as part of the deal. Blackstone, an American private equity group, owns 20 percent and would fully exit.
The potential deal comes as U.S.-based fashion companies increasingly look to compete in the European-dominated industry, Reuters noted.
Many have their own opinions as to where the Versace brand will go in the hands of Michael Kors but one thing is for certain, Luxury brands are packing serious capital and Michael wants his hands in the Versace cookie jar.