On Tuesday, Michael Kors Holdings said it had agreed to buy the shoe company Jimmy Choo for 896 million pounds, or about $1.2 billion, the latest push by an American high-end fashion house to find new sources of growth and what its chief executive characterized as the first step in building a bigger international luxury group. Luxury brand Jimmy Choo has a new owner!In a bid to burnish its brand image, American bag and accessories maker Michael Kors is buying luxury shoemaker Jimmy Choo in a deal worth $1.35 billion.Jimmy Choo, which counts Jennifer Lopez, Duchess of Cambridge Kate Middleton and Beyonce among its fans, has a high-level profile that tempted Michael Kors to pay a premium.Shareholders in Jimmy Choo will get 2.3 pounds in cash for each share, about 36.5 percent above the firm's share price of 1.685 pounds on April 21.Michael Kors has struggled recently, announcing in May that it would close up to 125 stores due to weak sales.It said that Jimmy Choo is "the ideal partner" and will have its online presence bolstered as a result of the deal.
Michael Kors buys Jimmy Choo for US$1.2 billion.