LONDON--(BUSINESS WIRE)--
Capri Holdings Limited, a global fashion luxury group, announced today
that it has changed its name from Michael Kors Holdings Limited (NYSE:
KORS), and beginning on January 2, 2019, its New York Stock Exchange
ticker symbol will be CPRI. The company is also pleased to announce that
it has completed its acquisition of Versace.
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VERSACE (Photo: Business Wire
John D. Idol, Chairman and Chief Executive Officer of Capri Holdings
said, “With the acquisition of Versace, we have now created one of the
leading global fashion luxury groups in the world. The new name for our
group, Capri Holdings, is inspired by the fabled island which has long
been recognized as an iconic, glamorous and luxury destination. The
island’s spectacular three rock formation, formed over 200 million years
ago, is symbolic of the timeless heritage and strong foundation that is
at the core of each of the three founder-led brands.”
Mr. Idol continued, “Versace has long been recognized as one of the
world’s leading fashion luxury houses, and is synonymous with Italian
glamour and style. We are thrilled that the house of Versace is now part
of the Capri Holdings family of luxury brands. We look forward to
working with Chief Creative Officer Donatella Versace, Chief Executive
Officer Jonathan Akeroyd, and their incredibly talented team to continue
to drive Versace’s growth and success globally.”
Strategic Rationale
The acquisition of Versace is expected to deliver a number of benefits
for Capri Holdings, including:
-
Expand global group to include three iconic founder-led brands defined
by fashion luxury products with a reputation for world-class design
and innovation
-
Opportunity to help grow the group’s revenues to US$8.0 billion in the
long-term
-
Grow Versace to US$2.0 billion in revenues
-
Grow Jimmy Choo to US$1.0 billion in revenues
-
Grow Michael Kors to US$5.0 billion in revenues
-
Diversify geographic revenues, increasing exposure to growing Asia
region:
-
66% Americas to 57% Americas
-
23% Europe to 24% Europe
-
11% Asia to 19% Asia
-
Potential to create long-term operational synergies
Transaction Details
As previously announced, Capri Holdings acquired Versace for a total
enterprise value of Euro 1.83 billion (or approximately US$2.12 billion
on the date of announcement). The cash portion of the purchase price was
funded by a combination of cash on hand, drawings under its revolving
credit facility, and bank term loans. Concurrently with the closing, the
Versace family reinvested an aggregate of Euro 150 million of the cash
received for their interests in Versace in exchange for 2,395,170
ordinary shares of Capri Holdings.
Additional Information
For additional information concerning Capri Holdings Limited and the
Versace acquisition, please see the investor presentation available on
the Capri Holdings Limited website at www.capriholdings.com. For
the avoidance of doubt, the contents of this website are not
incorporated into and do not form part of this press release.
About Capri Holdings Limited
Capri 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
ready-to-wear 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. Capri Holdings Limited is
publicly listed on the New York Stock Exchange, and commencing January
2, 2019, its ticker will be CPRI.
Forward-Looking Statements
This press release contains 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 Capri
Holdings Limited (the “Company”) 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. 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) the expected effects of the Versace acquisition on
the Company; (ii) future capital expenditures, expenses, revenues,
earnings, economic performance, indebtedness, financial condition, share
buybacks, dividend policy, losses and future prospects; (iii) business
and management strategies and the expansion and growth of the Company’s
operations and benefits from the acquisition; and (iv) the effects of
government regulation on the Company’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 Company’s ability to
integrate the Versace businesses successfully and to achieve anticipated
benefits of the Versace acquisition; the risk of disruptions to the
Company’s businesses; the negative effects of the consummation of the
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 Versace
acquisition; fluctuations in demand for the Company’s products; levels
of indebtedness (including the indebtedness incurred in connection with
the Versace acquisition); future availability of credit; the timing and
scope of future share buybacks, which may be suspended at any time due
to market conditions and the level of other investing activities and
uses of cash; 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, including the
Company’s Annual Report on Form 10-K for the fiscal year ended March 31,
2018 (File No. 001-35368). 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, the Company does not provide 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 are expressly
qualified in their entirety by the cautionary statement above. The
Company disclaims any obligation to update or revise any forward-looking
or other statements contained herein other than in accordance with legal
and regulatory obligations.
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Capri Holdings Limited
Katina Metzidakis
(201)
514-8234
InvestorRelations@capriholdings.com
Media:
Capri Holdings Limited
Francesca Leoni
Press@capriholdings.com
Source: Capri Holdings Limited