BY Richard Summerfield
Luxury shoe manufacturer Jimmy Choo Plc has been sold to fashion brand Michael Kors in a deal worth $1.2bn, or $1.35bn including assumed net debt.
According to a statement announcing the deal, Jimmy Choo investors will receive 230 pence, or about $3, for each share held. The price represents a 36.5 percent premium to the company’s share price in April, before the company announced it was putting itself up for sale. The deal is expected to close in Q4 2017.
Though the company has retained many of its celebrity endorsements since it shot to fame in the late 1990s and early 2000s, it has struggled to retain its status in recent years. Furthermore, JAB Holding, the company which holds a 70 percent stake in Jimmy Choo, having acquired the brand for £500m, is moving out of the luxury fashion market and is exploring dealmaking opportunities in other industries, including the food and beverage sector. Jimmy Choo has only been publicly owned for a little over three years.
John D. Idol, chairman and chief executive of Michael Kors, said, “We are pleased to announce the acquisition of Jimmy Choo, an iconic brand with a rich history as a leading global luxury house. Jimmy Choo is known worldwide for its glamorous and fashion-forward footwear. The company is a leader in setting fashion trends. Its innovative designs and exceptional craftsmanship resonate with trendsetters globally. We believe that Jimmy Choo is poised for meaningful growth in the future and our company is committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years.”
Pierre Denis, chief executive of Jimmy Choo, said, “It is a privilege for our management team to lead Jimmy Choo and to preside over such an exciting period for our company. We are convinced that there is so much more that can be delivered in the years ahead. We look forward to working closely with the leadership and team at Michael Kors Holdings Limited to further develop our iconic brand. Our two companies share the same vision of style and trend leadership. Our luxury heritage is the foundation of Jimmy Choo and we will continue to bring our brand vision to consumers globally.”