It plans to grow Versace to $2 billion in revenue globally and increase its retail footprint from roughly 200 to 300 stores.
The deal marks one of the first times an American company is going on the track of luxury conglomerate such as LVMH or KERING. Michael Kors had already dipped its toes in European fashion, last year buying shoe brand Jimmy Choo for $1.2 billion.
As part of the deal, Donatella Versace will stay on to oversee the label. Versace's management team will continue to be led by its CEO, Jonathan Akeroyd. Private-equity firm Blackstone, which owns 20 percent of Versace, will cash out as part of its deal.
Congratulations to John Idol, Michael Kors, Donatella Versace, Jonathan Akeroyd and all their teams for this new coming era.