Jimmy Choo acquired by Michael Kors
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Jimmy Choo has been snapped off the shelf for £896m by US fashion brand Michael Kors earlier this Tuesday.British luxury brand has a big list of high profile fans such as Beyoncé, Sarah Jessica Parker via “Sex and the City” and the Duchess of Cambridge.
As part of the deal, slated to close in the fourth quarter of this year, Jimmy Choo’s shareholders would receive 230 pence per share, a 36.5 percent premium over its share price before the sale was announced.
Well known by its strappy stilettoes, The brand was founded in a Hackney workshop in east London in 1996 by the Malaysian shoemaker Jimmy Choo after his designs caught the eye of then Vogue accessories editor, Tamara Mellon.
The acquisition by Michael Kors, which is expected to be finalised this autumn, marks the fourth time Jimmy Choo, which listed on the London Stock Exchange less than three years ago at a value of £545.6m, has changed hands.
“Acquiring Jimmy Choo is the beginning of a strategy that we have for building a luxury group that really is focused on international fashion brands,” John D. Idol, the chairman and chief executive of Michael Kors Holdings, said in an interview.
Mr Idol said he was targeting more acquisitions, focusing on luxury companies that “lead in style and trend” but also “have got some size and scale” as well as “some heritage.”
Michael Kors is well known in the “affordable luxury” market segment, but like many fashion companies, it has struggled in recent years as shoppers have turned away from shopping malls due to online shopping surge in the recent years.Also, Analysts said the company has been particularly hurt by the weakened state of big department stores, which forced it to reduce the price of its handbags, creating the perception they were less exclusive.
Success will mostly depend on keeping the brands’ distinctive, high-end focus.