High-end shoemaker Jimmy Choo has been purchased by Michael Kors Holdings in an offer which values the company at about ₤ 896m.
The British company, which was offered in April, had brought in attention from a variety of suitors.
Along with shoes, Jimmy Choo produces a series of high-end items, but has seen sales slow recently.
Under the regards to the contract, Jimmy Choo will become a wholly-owned subsidiary of Michael Kors.
Mr Kors himself, the honorary chairman and chief innovative officer of the company that bears his name, explained the purchase as “a leading style high-end house that provides unique shoes, purses and other devices”.
He included: “We appreciate the attractive design and trendsetting nature of Jimmy Choo styles. We anticipate inviting Jimmy Choo to our high-end group.”
The sale strategy was backed by Jimmy Choo’s primary investor, JAB Holdings, owned by the German billionaire Reimann household.
Michael Kors Holdings stated the acquisition was anticipated to provide a variety of advantages, consisting of “the chance to grow Jimmy Choo sales to one billion” and “a better balanced portfolio with higher item diversity”.
It stated Jimmy Choo would likewise have the chance to grow in the guys’s high-end shoes classification, in addition to higher direct exposure to worldwide markets, “especially the fast-growing market in Asia”.
Malaysian shoemaker Jimmy Choo co-founded the company but does not own it.
The company was co-founded by Malaysian shoemaker Jimmy Choo, who trained at the prominent Cordwainers Technical College in London, and previous Vogue reporter Tamara Mellon in 1996.
It rapidly developed a devoted customer list of artists, starlets and royalty. The Duchess of Cambridge is a fan of the British shoe designer, as is vocalist Beyonce and Oscar winning starlet Emma Stone.
But it has gone through a variety of different owners for many years. Ms Mellon and the very first of a number of different personal equity suitors purchased out Mr Choo in 2001.
10 years later on, Ms Mellon left business to introduce her own clothes line. In 2014, Jimmy Choo noted on the London Stock Exchange, by which time JAB, owned by the German billionaire Reimann household, was the primary investor.