One of America’s best-known fashion retailers has agreed to take over luxury shoe brand Jimmy Choo in an £896m deal.
Michael Kors, the New York-listed chain, said on Tuesday it was “the ideal partner” for Jimmy Choo, famous for its stiletto shoes and accessories.
Several buyers were in the race and mulling offers for the upmarket shoe designer, as revealed by Sky News earlier this month.
Under the terms of the deal, Jimmy Choo shareholders will receive 230p in cash for each share, a premium of 36.5% on the firm’s share price of 168.5p on 21 April.
Michael Kors said in a statement that it will support the growth of Jimmy Choo through “retail store openings and further development of its online presence”.
John Idol, chairman and chief executive, added: “We believe that Jimmy Choo is poised for meaningful growth in the future and we are committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.”
Image: Michael Kors says it is the ideal partner for the luxury shoe brand
Jimmy Choo, which counts Jennifer Lopez, the Duchess of Cambridge and Beyonce among its fans, was put up for sale in April by JAB Holding, the vehicle which owns 70% of the London-listed company.
The company announced record annual revenues and profits in March, aided by a boost from the Brexit-hit pound and strong sales across Asia.
Chairman Peter Harf said: “A combination with Michael Kors will allow Jimmy Choo to embark on its next phase of growth and provide opportunities for the benefit of Jimmy Choo customers, employees, shareholders and other stakeholders.”
The brand was founded by entrepreneur Tamara Mellon and footwear designer Jimmy Choo back in 1996, with both later selling their holdings.
The shoes were famously worn by TV character Carrie Bradshaw in the hit US series Sex and the City.
The shoe firm will operate under its existing management team, including chief executive Pierre Denis.
It has more than 150 stores globally as well as a presence in many of the world’s top department stores.
Michael Kors has been enduring a difficult trading period and has been expanding into dresses and menswear as well as investing in its online business to boost sales.
Source: Sky News