John D. Idol, Chairman and Chief Executive Officer of Michael Kors Holdings Limited, commented: “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.”

With this new deal, the management at Michael Kors is expecting to grow Jimmy Choo sales to 1 billion US dollars. According to the same source, the acquisition of the luxury brand will result in a more balanced portfolio with greater product diversification and an enhanced positioning in the attractive and growing luxury footwear segment. Michael Kors also sees the opportunity to grow in the men’s luxury footwear category and to further expand in the luxury accessories market. With the two brands now under the same group, a greater exposure to global markets, particularly the fast-growing market in Asia is also expected.

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 on the 1st of November.