Michael Kors is preparing to pay $2 billion for the purchase of luxury brand Versace. Announcement of the deal, which would bring one of the most famous fashion houses in the world into the arsenal of the handbag company, could come this week, according to a Bloomberg report.
Rumors of a coming Versace sale are not new, and several companies have expressed interest in the Italian brand. As of now 80 percent of the Versace company belongs to Donatella and Santo Versace, siblings to the deceased Gianni, while the other 20 percent belongs to Blackstone Group LP. If the deal goes through, the Versace family will reportedly stay involved, while Blackstone will sell off its stake.
The Versace purchase would be part of Michael Kors’ larger effort to build a multibrand fashion conglomerate to compete in the US with Tapestry, the owner of Coach. Though representatives from the involved companies didn’t comment on the story, the Versace family will reportedly announce the sale to employees on Tuesday.
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