Michael Kors to Acquire Jimmy Choo for $1.2B

Michael Kors is buying Jimmy Choo for cash in a deal valuing Choo at 896 million pounds, or $1.2 billion.

The boards of directors of Michael Kors Holdings Limited and Jimmy Choo PLC said early Tuesday they had reached an agreement for a recommended cash acquisition by which the entire issued and to-be-issued ordinary-share capital of Jimmy Choo will be acquired by JAG Acquisitions, a wholly owned subsidiary of Michael Kors.

Under the terms of the deal, each scheme shareholder will receive 2.3 pounds in cash for each Jimmy Choo share, valuing Jimmy Choo’s existing issued and to-be-issued ordinary-share capital at approximately 896 million pounds.

The Jimmy Choo share price represents a premium of approximately 36.5 percent to Jimmy Choo’s share price of 1.69 pounds at the close of business on April 21, the last business day before the Jimmy Choo directors announced the commencement of the formal sale.