Fashion house Michael Kors announced Tuesday it had agreed to buy Italian luxury giant Versace.
Michael Kors, an iconic label rooted in American and New York fashion but headquartered in London, will pay 1.83 billion euros ($2.1 billion) for Versace, a statement said.
“We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth,” said Michael Kors chief executive John Idol.
Idol said that Donatella Versace, artistic director and vice president of the Italian group, would stay on to lead the label’s creative vision, saying her “iconic style” was “at the heart of the design aesthetic of Versace”.
Donatella said the takeover was “essential to Versace’s long-term success”.
She added in the statement: “We are all very excited to join a group led by John Idol, whom I have always admired as a visionary as well as a strong and passionate leader.”
Twenty percent of Versace, known for its Medusa head logo, was bought by US private equity group Blackstone in 2014, and the family owns the rest.
Launched in 1981, Michael Kors is named after its US founder, the New York designer with an avid celebrity following who has dressed the likes of Melania Trump and Michelle Obama.
The 59-year-old Long Island-born self-made tycoon is still creative director and the company has been through highs and lows, forced to file for bankruptcy protection in 1993, but able to restructure with an initial investment by LVMH before going back on the New York Stock Exchange in 2011.