Jimmy Choo acquired by Michael Kors Holding

Michael Kors Holdings completed the acquisition of Jimmy Choo on 1 November 2017, having agreed terms on 25 July, at 230 pence per share in cash for the whole of the issued and to be issued capital, an enterprise value of £1–10bn. The purchase was effected through a scheme of arrangement under English law and funded by a new term loan facility, senior unsecured notes bearing a weighted average rate of 3.1% and existing cash. Founded in 1996 as a bespoke atelier, Jimmy Choo designs and distributes luxury footwear, principally women’s shoes, alongside handbags, small leather goods and accessories. It operated approximately 150 of its own boutiques, supplied 560 multi-brand accounts and had more than 60 franchised stores across Europe, the Middle East, the Americas and Asia. Revenue amounted to £250–500M for the year to December 2016. JAB Luxury, the holding company of the Reimann family, sold its controlling interest, and undertakings covering 69.21% of the capital, including those of the directors and of creative director Sandra Choi, were given in support of the scheme before the shareholder vote. Footwear had been the acquirer’s weakest category, its own range built around accessories and ready-to-wear, while the target derived the greater part of its revenue from shoes and held a position in evening and formal footwear that cannot readily be constructed. Chief executive Pierre Denis, who had led the company since 2012 over a period of 11% compound annual sales growth, remained in place with Sandra Choi, creative director since the foundation and sole holder of that role since 2013. The transaction preceded the acquisition of Versace in September 2018, after which the acquirer took the name Capri Holdings.

In the past, Jimmy Choo was acquired by Lion Capital in 2004 as part of its expansion strategy.