Michael Kors purchases Jimmy Choo for $1.35 billion

NEW YORK, NY - JULY 25:  A Jimmy Choo store stands in lower Manhattan on July 25, 2017 in New York City. Michael Kors Holdings announced on Tuesday that it had agreed to buy the shoe company Jimmy Choo for 896 million pounds, or about $1.2 billion. As retail sales across the country continue to weaken, many companies are starting to search for new sources of growth, especially in more luxury brand markets.  (Photo by Spencer Platt/Getty Images)

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NEW YORK, NY - JULY 25: A Jimmy Choo store stands in lower Manhattan on July 25, 2017 in New York City. Michael Kors Holdings announced on Tuesday that it had agreed to buy the shoe company Jimmy Choo for 896 million pounds, or about $1.2 billion. As retail sales across the country continue to weaken, many companies are starting to search for new sources of growth, especially in more luxury brand markets. (Photo by Spencer Platt/Getty Images)

Fashion brand Michael Kors announced that it has reached an agreement to acquire footwear and accessories brand Jimmy Choo for $1.35 billion.

The transaction has been approved by the boards of directors of both Michael Kors and Jimmy Choo, according to a company statement. Founded in 1996 by former British Vogue accessories editor Tamara Mellon and Malaysian fashion designer Jimmy Choo, the company has more than 150 stores worldwide.

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"We are pleased to announce the acquisition of Jimmy Choo, an iconic brand with a rich history as a leading global luxury house. Jimmy Choo is known worldwide for its glamorous and fashion-forward footwear," John Idol, chairman and chief executive officer of Michael Kors, said in a statement, Vogue Paris reported. "The company is a leader in setting fashion trends. Its innovative designs and exceptional craftsmanship resonate with trendsetters globally. We believe that Jimmy Choo is poised for meaningful growth in the future and our company is committed to supporting the strong brand equity that Jimmy Choo has built over the last 20 years."

Forbes reported that a pair of Jimmy Choo stilletos typically cost more than $1,000. Famous fans of the  brand include Sarah Jessica Parker, Beyonce and Jennifer Lopez.

The Associated Press reported that Michael Kors announced in May that it would close up to 125 stores because of weak sales.

“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,” he said.

Michael Kors said the acquisition is expected to deliver a number of benefits for Jimmy Choo, including the opportunity to grow its sales to $1 billion.

The AP reported that Jimmy Choo shares were up 17 percent Tuesday and Michael Kors was down 2.5 percent.

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