Here goes another round of fashion company musical chairs! Michael Kors Holdings Ltd. has agreed to buy luxury accessories label Jimmy Choo PLC for around £896 million (or $1.2 billion in US currency).
The London-based firm was put up for sale in April and had since attracted a number of suitor companies. Under the terms of the agreement, Jimmy Choo will become a wholly-owned subsidiary of Michael Kors.
"We admire the glamorous style and trendsetting nature of Jimmy Choo designs. We look forward to welcoming Jimmy Choo to our luxury group," Michael Kors himself said to BBC.
With the sale plan backed by Jimmy Choo's main shareholder, JAB Holdings, the acquisition is expected to deliver a number of benefits, including "the opportunity to grow Jimmy Choo sales to one billion" and "a more balanced portfolio with greater product diversification."
Further reports also stated that Jimmy Choo, co-founded in 1996 by the Malaysian shoemaker of the same name, would also have an opportunity to grow in the men's luxury footwear category, as well as garner greater exposure to the global scene, "particularly the fast-growing market in Asia."
We can't wait to see how things turn out!