The Michael Kors group of luxury brands will rename itself Capri Holdings, inspired perhaps by its decision to buy the Italian fashion house Versace at a purchase price of $2.12 billion.
"We are excited to have Versace as part of our family of luxury brands, and we are committed to investing in its growth," Michael Kors Chairman and CEO John Idol said in the press release.
"We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth," he added.
Michael Kors says as part of its long-term strategy it will aim to grow Versace to $2 billion of revenue globally while expanding its retail footprint to 300 stores from 200. It also hopes to build out Versace's e-commerce and omni-channel development.
The deal will help the American-based brand diversify its geographic portfolio from 66% Americas to 57% Americas; from 23% Europe to 24% Europe; and from 11% Asia to 19% Asia.