Fashion retailer Michael Kors has completed the acquisition of Michael Kors (HK) Limited, the exclusive licensee of the company in China and certain other jurisdictions in Asia, for US $ 500 million in cash.
As per the company release, the acquisition was approved by the independent members of board of directors, upon recommendation of a Special Committee, comprised of solely independent directors, which was responsible for evaluating the terms of the acquisition.
“We are very excited about the acquisition of our Greater China licensee. As you know, we have worked diligently over the past several years, with our licensed partner in this region, to build the infrastructure, establish the brand, and grow acceptance of Michael Kors in the Chinese market. We believe that our brand is gaining strong momentum in Greater China, making it the ideal time for us to integrate this territory into our business and capitalize on the enormous growth potential in this region,” said John D. Idol, the Company’s Chairman and Chief Executive Officer.
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The Greater China business fetched revenue of around US $ $197 million for the year ended March 31, 2016, for the company, and had a network of 91 company-operated retail stores across China, Hong Kong, Macau and Taiwan. Michael Kors expects the Greater China business to contribute about US $ 200 million to retail net sales in fiscal year 2017.
