Capri Holdings Ltd, formerly Michael Kors Holdings Ltd, has completed acquisition of Versace, an Italian luxury fashion company, for a total enterprise value of €1.83 bn (approx $2.12 bn). Global fashion luxury group Michael Kors has changed its name to Capri Holdings beginning January 2, 2019, with ticker symbol CPRI on New York Stock Exchange.

The acquisition of Versace is expected to deliver a number of benefits for Capri Holdings. It can now expand its global group to include three iconic founder-led brands defined by fashion luxury products with a reputation for world-class design and innovation, according to a report by Capri Holdings. It has the opportunity to help grow the group’s revenues to $8.0 bn in the long-term (Versace to $2.0 bn, Jimmy Choo to $1.0 bn and Michael Kors to $5.0 bn in revenues). Capri Holdings wants to diversify its geographic revenues, increasing exposure to growing Asia region, said a report from the company.

“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 recognised as an iconic, glamorous and luxury destination. The island’s spectacular three rock formation, formed over 200 mn years ago, is symbolic of the timeless heritage and strong foundation that is at the core of each of the three founder-led brands,” said John D Idol, Chairman and Chief Executive officer of Capri Holdings.

“Versace has long been recognised 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,” added Idol.