Michael Kors is nearing an agreement to acquire Versace, people familiar with the matter told Bloomberg. The deal, which values Versace at approximately $2 billion, could be announced as early this week.
Donatella Versace, who has helped run the company with her brother Santo Versace since the 1997 murder of founder Gianna Versace, has scheduled a meeting with employees for Sept. 25 to announce the sale, according to two people familiar with the situation. The Versace family, which owns 80% of the company, will continue to have a role under any agreement made. Blackstone Group, which controls the remaining 20%, plans to sell its stake in the deal.
Representatives for Versace and Blackstone declined to provide comments to Bloomberg, while Michael Kors executives could not immediately be reached. Source say that while the talks are advanced, no final decision has been reached.
Michael Kors acquired the Jimmy Choo luxury shoe brand for approximately $1.2 billion in 2017 to expand its portfolio. The addition of Versace would further broaden Michael Kors’ presence in luxury, but the company is facing rival bids from companies including Tiffany & Co., PVH Corp. and Tapestry, according to Women’s Wear Daily.