Home Business Michael Kors Buys Jimmy Choo for $1.16 Billion

Michael Kors Buys Jimmy Choo for $1.16 Billion

Jimmy Choo has been bought by Michael Kors Holdings in a deal which values the luxury shoemaker at £896 million ($1.16 billion).

The British company, which was put up for sale in April, had attracted attention from a number of suitors.

As well as shoes, Jimmy Choo produces a range of luxury goods.

Its shoes featured the 90s TV hit show, Sex and the City, and are still seen on the feet of the famous, including Kate Middleton, Beyonce and Kendal Jenner.

Malaysian-born Jimmy Choo was trained at the renowned Cordwainers Technical College in London.

He founded the business in 1996 with former Vogue journalist Tamara Mellon.

In 2001, Tamara Mellon and private equity investors bought out Jimmy Choo.

Ten years later, Tamara Mellon left the business to launch her own clothing line.

Image source Flickr

Nicole Kidman features Jimmy Choo Spring/Summer 2014

In 2014, Jimmy Choo listed on the London Stock Exchange, by which time JAB, owned by the German billionaire Reimann family, was the main shareholder.

JAB Holdings is backing this deal.

Michael Kors describes itself as a luxury brand, and, like Jimmy Choo, it is named after its founder and creative force.

Its handbags are priced at between $200-600.

Recent years have been a struggle for Michael Kors, its most recent same-store sales figures were down 14%.

Michael Kors said the acquisition was expected to deliver a number of benefits, including “the opportunity to grow Jimmy Choo sales to one billion dollars” and “a more balanced portfolio with greater product diversification”.

It said Jimmy Choo would also have the opportunity to grow in the men’s luxury footwear category, as well as greater exposure to global markets, “particularly the fast-growing market in Asia”.