Michael Kors takes over shoemaker Jimmy Choo

Michael Kors Shoes, 7/2014 (Photo by Mike Mozart/Flickr, CC BY 2.0)

LONDON – American fashion brand Michael Kors has bought luxury shoemaker Jimmy Choo in a deal worth $1.35 billion (896 million pounds).

Kors says that London-listed Jimmy Choo is “the ideal partner” that will be bolstered with further development of its online presence. Jimmy Choo CEO Pierre Dennis will stay in his job. Creative Director Sandra Choi will also stay to lead creative and design teams.

The deal gives Jimmy Choo shareholders 2.3 pounds in cash for each share, a premium of 36.5 per cent on the firm’s share price of 1.685 pounds on April 21.

John Idol, CEO of Michael Kors, says the handbag maker believes “that Jimmy Choo is poised for meaningful growth in the future and we are committed to supporting the strong brand equity that Jimmy Choo has built.”