Creates a global fashion luxury group through the combination of two
iconic brands
LONDON--(BUSINESS WIRE)--
Michael Kors Holdings Limited (NYSE:KORS) (the “Company”) today
announced that it has completed the acquisition of Jimmy Choo PLC
(“Jimmy Choo”). Under the terms of the transaction, Jimmy Choo
shareholders received 230 pence per share with a total transaction value
of approximately $1.35 billion.
John D. Idol, Chairman and Chief Executive Officer of Michael Kors
Holdings Limited, said, “We are thrilled to have completed the
acquisition of Jimmy Choo, which brings together two iconic brands to
create a global fashion luxury group. Jimmy Choo has a rich history as a
leading global luxury house, renowned for its glamorous and
fashion-forward footwear, and is an excellent complement to the Michael
Kors brand. We believe this combination further strengthens our future
growth opportunities while also increasing both product and geographic
diversification. We look forward to partnering with Chief Executive
Officer Pierre Denis, Creative Director Sandra Choi and the rest of the
team as we grow the business globally while continuing to support the
strong brand equity that Jimmy Choo has built over the last 20 years.”
Strategic Rationale
The acquisition of Jimmy Choo is expected to deliver a number of
benefits, including:
-
The opportunity to grow Jimmy Choo sales to $1 billion
-
A more balanced portfolio with greater product diversification
-
An enhanced positioning in the attractive and growing luxury footwear
segment
-
The opportunity to grow in the men’s luxury footwear category
-
Further expansion in the luxury accessories market
-
Greater exposure to global markets, particularly the fast-growing
market in Asia
Transaction Details
As previously announced, the acquisition was funded through a
combination of borrowings under the Company’s new term loan facility and
the issuance of senior unsecured notes, with a weighted average interest
rate of 3.1%, as well as cash on hand. The acquisition was effected by
way of a UK scheme of arrangement, which became effective today.
About Michael Kors Holdings Limited
Michael Kors Holdings Limited is a global fashion luxury group,
consisting of iconic brands that are industry leaders in design, style
and craftsmanship. Its brands cover the full spectrum of fashion luxury
categories including women’s and men’s accessories, footwear and apparel
as well as wearable technology, watches, jewelry, eyewear and a full
line of fragrance products. The company’s goal is to continue to extend
the global reach of its brands while ensuring that they maintain their
independence and exclusive DNA. Michael Kors Holdings Limited is
publicly listed on the New York Stock Exchange under the ticker KORS.
Forward Looking Statements
This press release (including information incorporated by reference in
this press release), oral statements made regarding the acquisition of
Jimmy Choo, and other information published by the Company, JAG
Acquisitions (UK) Limited (“Michael Kors Bidco”) and Jimmy Choo contain
statements which are, or may be deemed to be, "forward-looking
statements". Forward-looking statements are prospective in nature and
are not based on historical facts, but rather on current expectations
and projections of the management of the Company, Michael Kors Bidco and
Jimmy Choo about future events, and are therefore subject to risks and
uncertainties which could cause actual results to differ materially from
the future results expressed or implied by the forward-looking
statements. The forward-looking statements contained in this press
release include statements relating to the expected effects of the
Acquisition on the Company, Michael Kors Bidco and Jimmy Choo, the
expected timing and scope of the Acquisition and other statements other
than historical facts. All statements other than statements of
historical facts included in this press release may be forward-looking
statements. Without limitation, any statements preceded or followed by
or that include the words "targets", "plans", "believes", "expects",
"aims", "intends", "will", "should", "could", "would", "may",
"anticipates", "estimates", "synergy", "cost-saving", "projects",
"goal", "strategy", "budget", "forecast" or "might", or words or terms
of similar substance or the negative thereof, are forward-looking
statements. Forward-looking statements include statements relating to
the following: (i) future capital expenditures, expenses, revenues,
earnings, economic performance, indebtedness, financial condition,
dividend policy, losses and future prospects; (ii) business and
management strategies and the expansion and growth of Jimmy Choo's and
the Company’s operations and benefits from the Acquisition; and (iii)
the effects of government regulation on the Company’s, Michael Kors
Bidco’s or Jimmy Choo’s business.
These forward-looking statements are not guarantees of future financial
performance. Such forward-looking statements involve known and unknown
risks and uncertainties that could significantly affect expected results
and are based on certain key assumptions. Many risks, uncertainties and
other factors could cause actual results to differ materially from those
projected or implied in any forward-looking statements. These risks,
uncertainties and other factors include the satisfaction of the
conditions to consummating the Acquisition, Michael Kors’ ability to
integrate the businesses successfully and to achieve anticipated
benefits of the acquisition; the risk of disruptions to the Company’s or
Jimmy Choo’s businesses; the negative effects of the announcement of the
proposed Acquisition or the consummation of the proposed Acquisition on
the market price of the Company’s ordinary shares and its operating
results; significant transaction costs; unknown liabilities; the risk of
litigation and/or regulatory actions related to the proposed
acquisition; fluctuations in demand for Jimmy Choo’s and the Company’s
products; changes in consumer traffic and retail trends; loss of market
share and industry competition; fluctuations in the capital markets;
fluctuations in interest and exchange rates; the occurrence of
unforeseen disasters or catastrophes; political or economic instability
in principal markets; adverse outcomes in litigation; and general, local
and global economic, political, business and market conditions, as well
as those risks set forth in the reports that the Company files from time
to time with the U.S. Securities and Exchange Commission. Other unknown
or unpredictable factors could cause actual results to differ materially
from those in the forward-looking statements. Such forward-looking
statements should therefore be construed in the light of such factors.
Unless otherwise required by applicable law, neither the Company,
Michael Kors Bidco nor Jimmy Choo, nor any of their respective
associates or directors, officers or advisers, provides any
representation, assurance or guarantee that the occurrence of the events
expressed or implied in any forward-looking statements in this press
release will actually occur. Due to such uncertainties and risks,
readers are cautioned not to place undue reliance on such
forward-looking statements. All subsequent oral or written
forward-looking statements attributable to the Company, Michael Kors
Bidco or Jimmy Choo or any of their respective members, directors,
officers or employees or any persons acting on their behalf are
expressly qualified in their entirety by the cautionary statement above.
The Company, Michael Kors Bidco and Jimmy Choo disclaim any obligation
to update or revise any forward-looking or other statements contained
herein other than in accordance with their legal and regulatory
obligations.
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Source: Michael Kors Holdings Limited