Actionable news
0
All posts from Actionable news
Actionable news in KORS: MICHAEL KORS HOLDINGS LIMITED,

Michael Kors Buys Jimmy Choo For $1.2 Billion

Michael Kors (KORS) announced it has agreed to acquire iconic shoemaker Jimmy Choo for £896 million ($1.17 billion), as the US company seeks to offset slower growth in its core handbag business. As part of the recommended all cash acquisition the entire issued and to be issued ordinary share capital of Jimmy Choo will be acquired by JAG Acquisitions (Michael Kors Bidco), a wholly-owned subsidiary of Michael Kors.

Each scheme shareholder will receive 230p in cash for each Jimmy Choo share, valuing Jimmy Choo’s existing issued and to be issued ordinary share capital at just under $1.2 billion. The offer price of 230p is final and will not be increased, except that Michael Kors Bidco reserves the right to increase the amount of offer price if there is an announcement on or after date of this announcement of an offer or possible offer for Jimmy Choo by a third party offeror or potential offeror.

In a statement, Michael Kors described itself as “the ideal partner for Jimmy Choo,” saying it would “support the growth of Jimmy Choo through retail store openings and further development of its online presence as well as through an expanded assortment of additional fashion product offerings.”

Michael Kors, like its luxury retail rivals, has struggled for years to entice American shoppers to pay full price for its handbags amid fierce price competition and an environment of heavy discounting that has pressured profits. Sales of handbags are lagging as women have traded down to...


More