Yes! You read that headline correctly. According to several news sources, Michael Kors has agreed to buy the Milanese fashion house Versace, in a deal worth about $2 Billion. Now the Versace family will still keep some sort of role in the company after the sale but until the deal is finalized there are no details on how involved they will be.
This will be a big move for Michael Kors on so many fronts to acquire such a prestigious fashion house. Kors has always expressed his interest in building a portfolio full of high end luxury brands. If this deal comes to fruition Kors will be well on his way to creating a conglomerate of luxury brands globally.
Now for those of you thinking that Versace is getting the bad end of the deal, I would like to remind you that Michael Kors purchased Jimmy Choo and sales are on an increase. This deal can give Versace the stronghold in the US that they have always needed. In my opinion, a merger of this magnitude would be beneficial to both parties involved. Official word on this merger should be announced later this week.