Shoe brand Jimmy Choo sold to American designer Michael Kors

Audrey Hill
July 26, 2017

The all-cash offer equates to 230p per share in the designer footwear company.

Jimmy Choo shares were up 16.79% in the first hour of trading at 227.75 pence in London. Additionally, unless a third party presents an additional offer, this agreement is "final and will not be increased".

Its chief executive, John Idol, said: "Jimmy Choo is known worldwide for its glamorous and fashion-forward footwear. Our luxury heritage is the foundation of Jimmy Choo and we will continue to bring our brand vision to consumers globally". Profit for the year fell to £15.4 million from £19.4 million.

The statement continued: 'Michael Kors believes it is the ideal partner for Jimmy Choo and is well positioned to support Jimmy Choo's continued growth.

Tamara Mellon and Jimmy Choo the Malaysian cobbler founded the shoemaker in 1996. Chinese private equity firm Hony Capital also expressed an interest in Jimmy Choo, but Michael Kors finally captured the brand.

The update comes three months after Jimmy Choo put itself up for sale, with majority shareholder JAB, controlled by the German billionaire Reimann family, looking to move out of the luxury fashion market.

The brand grew its reputation through associations with the famous faces like the Duchess of Cambridge, Emma Stone and Beyonce.

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JAB is moving out of fashion to concentrate on its coffee and food businesses, including Krispy Kreme.

The sale came nearly three years after Jimmy Choo went public. More recently the company expanded to men's shoes - sales of which are growing more swiftly than sales of women's items, even if they remain a smaller slice of the pie.

The British firm is a renowned brand for shoes, handbags and other accessories.

Goldman Sachs and JP Morgan acted for Michael Kors on the deal, while Merrill Lynch, Citigroup, Liberum and RBC Europe acted for Jimmy Choo. Jimmy Choo will continue to work with the existing management team.

The BBC says that headline sales growth after currency adjustments was seven per cent in 2015 and 12 per cent in 2014.

Kors, though, is hoping to use its own massive global infrastructure to expand Jimmy Choo's footprint. Its share price has lost a fifth of its value in 2017.

Other reports by MaliBehiribAe

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