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Michael Kors calls Jimmy Choo 'ideal partner' after deal closes

The Canadian Press Published Tuesday, July 25, 2017 12:30PM EDT

The Michael Kors name adorns his store on Madison Avenue, in New York, Wednesday, May 31, 2017. Michael Kors Holdings plans to close up to 125 stores over the next two years with continued weak sales at its luxury stores. (AP Photo/Richard Drew)

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LONDON -- American fashion brand Michael Kors is buying luxury shoemaker Jimmy Choo in a deal worth $1.35 billion (896 million pounds).

Kors says that Jimmy Choo, which counts Jennifer Lopez, the Duchess of Cambridge and Beyonce among its fans, is "the ideal partner" and will have its online presence bolstered.

Jimmy Choo CEO Pierre Dennis will stay in his job, as will Creative Director Sandra Choi.

The deal gives Jimmy Choo shareholders 2.3 pounds in cash for each share, a premium of 36.5 per cent on the firm's share price of 1.685 pounds on April 21.

John Idol, CEO of Michael Kors, says the handbag maker believes "that Jimmy Choo is poised for meaningful growth in the future and we are committed to supporting the strong brand equity that Jimmy Choo has built."