The company said Monday that it will change its name as of Jan. 2, 2019, with its ticker symbol becoming CPRI. At the same time, the company soon to be formerly known as Michael Kors Holdings, said it has completed its acquisition of Versace.
“With the acquisition of Versace, we have now created one of the leading global fashion luxury groups in the world,” John D. Idol, Capri Holdings chairman and chief executive officer, said. “The new name for our group, Capri Holdings, is inspired by the fabled island which has long been recognized as an iconic, glamorous and luxury destination. The island’s spectacular three rock formation, formed over 200 million years ago, is symbolic of the timeless heritage and strong foundation that is at the core of each of the three founder-led brands.”
With regard to the Versace acquisition, Idol said, “Versace has long been recognized as one of the world’s leading fashion luxury houses, and is synonymous with Italian glamour and style. We are thrilled that the house of Versace is now part of the Capri Holdings family of luxury brands. We look forward to working with chief creative officer Donatella Versace, chief executive officer Jonathan Akeroyd, and their incredibly talented team to continue to drive Versace’s growth and success globally.”
Capri Holdings acquired Versace for roughly $2.12 billion when the deal was first announced, using cash on hand and its revolving credit facility.
According to Capri, which will operate the Versace, Jimmy Choo and Michael Kors brands, bringing Versace into the fold is expected to help the company expand, building on its reputation for luxury.
Revenues are expected to grow to $8 billion in the long-term, with Kors generating $5 billion of that revenue, Jimmy Choo $1 billion and Versace $2 billion.
As part of the deal, Capri also expects to diversify its geographic revenues, particularly by expanding its exposure to the growing Asia region.