Michael Kors Holding, soon to be known as Capri Holdings has acquired world-famous Versace for US$2.12 billion in a race to build the US’s first luxury conglomerate. The amount agreed on for the acquisition is 2.5 times the brand’s revenue and 22 times higher than its earnings before interest, taxes, depreciation and amortisation. The deal is set to be officially sealed in 2019.

Kors has plans to increase Versace’s global retail footprint by building 100 more stores and expanding its men’s and women’s accessories and footwear lines. Despite the acquisition, Jonathan Akeroyd will stay on as Versace’s chief executive and creative director, Donatella Versace will also retain her role as creative director.

Versace said the movement is very exciting for the brand and that her brother, Santo and daughter, Allegra’s stake in Capri Holdings “demonstrates our belief in the long-term success of Versace and commitment to this new global fashion luxury group.”

“I am proud that Versace remains very strong in both fashion and modern culture. Versace is not only synonymous with its iconic and unmistakable style, but with being inclusive and embracing of diversity, as well as empowering people to express themselves. Santo, Allegra and I recognise that this next step will allow Versace to reach its full potential.”

“At the end of the day, because Versace is well known everywhere, it is a sleeping giant. We had balance in terms of gender, [and] as a brand, very strong international recognition, strong DNA and a fantastic archive. If in some way [we could] awake this giant – my God, you have a power,” said then-chief executive, Gian Giacomo Ferraris.

“Since I joined Versace over two years ago, our focus has been on leveraging the company’s heritage and strong brand recognition worldwide, which has allowed us to experience significant growth in all regions. Donatella’s unmatched vision has led to the continued and growing success of our brand. I am thrilled to be joining Capri Holdings Limited, which will be instrumental in accelerating our growth globally,” said Akeroyd.